As Passed by the House 1
123rd General Assembly 4
Regular Session Am. Sub. S. B. No. 3 5
1999-2000 6
SENATORS JOHNSON-FINAN-BLESSING-HERINGTON-ARMBRUSTER- 8
HOTTINGER-SPADA-WACHTMANN-MUMPER-GARDNER-KEARNS- 10
REPRESENTATIVES MEAD-OLMAN-TRAKAS-SCHULER-GOODMAN-HOOPS-CATES-
MOTTLEY-TERWILLEGER-HARRIS-CORE-BRADING-WOMER BENJAMIN- 11
TIBERI-CORBIN-THOMAS-VAN VYVEN-WINKLER-O'BRIEN-OPFER- 12
EVANS-PERZ-HOOD-AMSTUTZ-BRITTON-BARRETT 13
_________________________________________________________________ 14
A B I L L
To amend sections 113.061, 133.04, 715.013, 718.01, 16
1551.33, 1551.35, 3317.028, 4905.01, 4905.03, 17
4905.10, 4905.14, 4905.33, 4905.34, 4905.40,
4905.402, 4905.42, 4905.46, 4905.70, 4906.10, 19
4909.01, 4909.05, 4909.15, 4909.161, 4911.18, 20
4933.14, 4933.15, 4933.33, 4933.81, 4935.03, 21
4935.04, 5117.01, 5117.02, 5117.03, 5117.04, 22
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, 23
5117.12, 5701.03, 5703.052, 5703.053, 5703.14, 24
5705.34, 5727.01, 5727.02, 5727.05, 5727.06, 25
5727.11, 5727.111, 5727.15, 5727.30, 5727.31, 26
5727.311, 5727.32, 5727.33, 5727.38, 5727.42,
5727.45, 5727.47, 5727.53, 5727.60, 5727.61, 27
5727.72, 5727.99, 5733.04, 5733.05, 5733.051, 28
5733.057, 5733.06, 5733.09, 5733.33, 5733.98,
5739.011, 5739.02, 5747.31, and 5747.98; to enact 29
sections 4928.01 to 4928.20, 4928.31 to 4928.43, 30
4928.431, 4928.44, 4928.51 to 4928.58, 4928.61 to 32
4928.63, 4928.67, 5727.03, 5727.80 to 5727.95,
5733.059, 5733.0510, and 5733.39; and to repeal 33
sections 4905.301, 4905.66, 4905.67, 4905.68, 34
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 35
4909.192, 4909.193, 4913.01, 4913.02, 4913.03,
2
4913.04, 4913.05, 4913.06, 4913.07, 4933.27, 37
4933.34, 5727.231, 5727.391, and 5727.73 of the 38
Revised Code to provide for competition in retail 39
electric service, including provisions regarding
market structure, consumer protection, and 40
transition revenues; to levy a kilowatt-hour 41
excise tax on electric distribution companies; to
revise taxes for electric companies and rural 42
electric companies; to reduce tax assessment 43
rates on certain electric company and rural 44
electric company tangible personal property; and 45
to terminate the Electric Employee Assistance 46
Advisory Board on December 31, 2005, by repealing 47
section 4928.431 of the Revised Code on that 48
date.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 50
Section 1. That sections 113.061, 133.04, 715.013, 718.01, 52
1551.33, 1551.35, 3317.028, 4905.01, 4905.03, 4905.10, 4905.14, 54
4905.33, 4905.34, 4905.40, 4905.402, 4905.42, 4905.46, 4905.70, 55
4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 4911.18, 4933.14, 56
4933.15, 4933.33, 4933.81, 4935.03, 4935.04, 5117.01, 5117.02, 58
5117.03, 5117.04, 5117.05, 5117.07, 5117.08, 5117.09, 5117.10, 59
5117.12, 5701.03, 5703.052, 5703.053, 5703.14, 5705.34, 5727.01, 60
5727.02, 5727.05, 5727.06, 5727.11, 5727.111, 5727.15, 5727.30, 62
5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 5727.42, 5727.45, 63
5727.47, 5727.53, 5727.60, 5727.61, 5727.72, 5727.99, 5733.04,
5733.05, 5733.051, 5733.057, 5733.06, 5733.09, 5733.33, 5733.98, 64
5739.011, 5739.02, 5747.31, and 5747.98 be amended and sections 66
4928.01, 4928.02, 4928.03, 4928.04, 4928.05, 4928.06, 4928.07, 67
4928.08, 4928.09, 4928.10, 4928.11, 4928.12, 4928.13, 4928.14, 68
4928.15, 4928.16, 4928.17, 4928.18, 4928.19, 4928.20, 4928.31, 69
4928.32, 4928.33, 4928.34, 4928.35, 4928.36, 4928.37, 4928.38, 70
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4928.39, 4928.40, 4928.41, 4928.42, 4928.43, 4928.431, 4928.44, 71
4928.51, 4928.52, 4928.53, 4928.54, 4928.55, 4928.56, 4928.57, 72
4928.58, 4928.61, 4928.62, 4928.63, 4928.67, 5727.03, 5727.80, 74
5727.81, 5727.82, 5727.83, 5727.84, 5727.85, 5727.86, 5727.87, 75
5727.88, 5727.89, 5727.90, 5727.91, 5727.92, 5727.93, 5727.94, 76
5727.95, 5733.059, 5733.0510, and 5733.39 of the Revised Code be 78
enacted to read as follows:
Sec. 113.061. The treasurer of state shall adopt rules in 87
accordance with Chapter 119. of the Revised Code governing the 88
remittance of taxes by electronic funds transfer as required 89
under sections 5727.311, 5727.83, 5733.022, 5735.062, 5739.032, 90
5739.122, 5741.121, and 5747.072 of the Revised Code and any 92
other section of the Revised Code under which a person is 93
required to remit taxes by electronic funds transfer. The rules 94
shall govern the modes of electronic funds transfer acceptable to 95
the treasurer OF STATE and under what circumstances each mode is 96
acceptable, the content and format of electronic funds transfers, 98
the coordination of payment by electronic funds transfer and 99
filing of associated tax reports and returns, the remittance of 100
taxes by means other than electronic funds transfer by persons 101
otherwise required to do so but relieved of the requirement by 102
the treasurer of state, and any other matter that in the opinion 103
of the treasurer of state facilitates payment by electronic funds 104
transfer in a manner consistent with those sections. 105
Upon failure by a person, if so required, to remit taxes by 107
electronic funds transfer in the manner prescribed under section 108
5727.83, 5733.022, 5735.062, 5739.032, 5739.122, 5741.121, or 110
5747.072 of the Revised Code and rules adopted under this 111
section, the treasurer of state shall notify the tax commissioner 112
of such failure if the treasurer OF STATE determines that such 113
failure was not due to reasonable cause or was due to willful 115
neglect, and shall provide the tax commissioner with any 116
information used in making that determination. The tax 117
commissioner may assess an additional charge as specified in the 118
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respective section of the Revised Code governing the requirement 119
to remit taxes by electronic funds transfer. 120
The treasurer of state may implement means of 122
acknowledging, upon the request of a taxpayer, receipt of tax 123
remittances made by electronic funds transfer, and may adopt 124
rules governing acknowledgments. The cost of acknowledging 125
receipt of electronic remittances shall be paid by the person 126
requesting acknowledgment. 127
The treasurer of state, not the tax commissioner, is 129
responsible for resolving any problems involving electronic funds 130
transfer transmissions. 131
Sec. 133.04. (A) As used in this chapter, "net 140
indebtedness" means, as determined pursuant to this section, the 141
principal amount of the outstanding securities of a subdivision 142
less the amount held in a bond retirement fund to the extent such 143
amount is not taken into account in determining the principal 144
amount outstanding under division (AA) of section 133.01 of the 145
Revised Code. For purposes of this definition, the principal 146
amount of outstanding securities includes the principal amount of 147
outstanding securities of another subdivision apportioned to the 148
subdivision as a result of acquisition of territory, and excludes 149
the principal amount of outstanding securities of the subdivision 150
apportioned to another subdivision as a result of loss of 151
territory and the payment or reimbursement obligations of the 152
subdivision under credit enhancement facilities relating to 153
outstanding securities. 154
(B) In calculating the net indebtedness of a subdivision, 156
none of the following securities, including anticipatory 157
securities issued in anticipation of their issuance, shall be 158
considered: 159
(1) Securities issued in anticipation of the levy or 161
collection of special assessments, either in original or refunded 162
form; 163
(2) Securities issued in anticipation of the collection of 165
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current revenues for the fiscal year or other period not to 166
exceed twelve consecutive months, or securities issued in 167
anticipation of the collection of the proceeds from a 168
specifically identified voter-approved tax levy; 169
(3) Securities issued for purposes described in section 171
133.12 of the Revised Code; 172
(4) Securities issued under Chapter 122., 140., 165., 174
725., or 761., or section 131.23 of the Revised Code; 175
(5) Securities issued to pay final judgments or 177
court-approved settlements under authorizing laws and securities 178
issued under section 2744.081 of the Revised Code; 179
(6) Securities issued to pay costs of permanent 181
improvements to the extent they are issued in anticipation of the 182
receipt of, and are payable as to principal from, federal or 183
state grants or distributions for, or legally available for, that 185
principal or for the costs of those permanent improvements; 186
(7) Securities issued to evidence loans from the state 188
capital improvements fund pursuant to Chapter 164. of the Revised 189
Code or from the state infrastructure bank pursuant to section 190
5531.09 of the Revised Code; 191
(8) SECURITIES ISSUED IN AN AMOUNT EQUAL TO THE PROPERTY 193
TAX REPLACEMENT PAYMENTS RECEIVED UNDER SECTION 5727.85 OR 194
5727.86 OF THE REVISED CODE; 195
(9) Other securities, including self-supporting 197
securities, excepted by law from the calculation of net 198
indebtedness or from the application of this chapter; 199
(9)(10) Any other securities outstanding on October 30, 201
1989, and then excepted from the calculation of net indebtedness 205
or from the application of this chapter, and securities issued at 206
any time to fund or refund those securities. 207
Sec. 715.013. Except as otherwise expressly authorized by 216
the Revised Code, no municipal corporation shall levy a tax that 217
is the same as or similar to a tax levied under Chapter 322., 218
3734., 3769., 4123., 4141., 4301., 4303., 4305., 4307., 4309., 219
6
5707., 5725., 5727., 5728., 5729., 5731., 5735., 5737., 5739., 220
5741., 5743., or 5749. of the Revised Code. 221
This section does not prohibit a municipal corporation from 223
levying a tax on amounts received for admission to any place OR, 224
ON AND AFTER JANUARY 1, 2002, ON THE INCOME OF AN ELECTRIC 225
COMPANY OR COMBINED COMPANY, AS DEFINED IN SECTION 5727.01 OF THE 227
REVISED CODE.
Sec. 718.01. (A) As used in this chapter: 236
(1) "Internal Revenue Code" means the Internal Revenue 238
Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. 239
(2) "Schedule C" means internal revenue service schedule C 241
filed by a taxpayer pursuant to the Internal Revenue Code. 242
(3) "Form 2106" means internal revenue service form 2106 244
filed by a taxpayer pursuant to the Internal Revenue Code. 245
(4) "Intangible income" means income of any of the 247
following types: income yield, interest, dividends, or other 248
income arising from the ownership, sale, exchange, or other 249
disposition of intangible property including, but not limited to, 250
investments, deposits, money, or credits as those terms are
defined in Chapter 5701. of the Revised Code. 251
(B) No municipal corporation with respect to that income 253
which THAT it may tax shall tax such income at other than a 255
uniform rate.
(C) No municipal corporation shall levy a tax on income at 257
a rate in excess of one per cent without having obtained the 258
approval of the excess by a majority of the electors of the 259
municipality voting on the question at a general, primary, or 260
special election. The legislative authority of the municipal 261
corporation shall file with the board of elections at least
seventy-five days before the day of the election a copy of the 262
ordinance together with a resolution specifying the date the 263
election is to be held and directing the board of elections to 264
conduct the election. The ballot shall be in the following form: 265
"Shall the Ordinance providing for a... per cent levy on income 266
7
for (Brief description of the purpose of the proposed levy) be
passed? 267
FOR THE INCOME TAX 269
AGAINST THE INCOME TAX" 271
In the event of an affirmative vote, the proceeds of the 273
levy may be used only for the specified purpose. 274
(D)(1) Except as otherwise provided in division (D)(2) of 276
this section, no municipal corporation shall exempt from a tax on 277
income, compensation for personal services of individuals over 278
eighteen years of age or the net profit from a business or 279
profession.
(2) The legislative authority of a municipal corporation 281
may, by ordinance or resolution, exempt from a tax on income any 282
compensation arising from the grant, sale, exchange, or other 283
disposition of a stock option; the exercise of a stock option; or 284
the sale, exchange, or other disposition of stock purchased under 285
a stock option.
(E) Nothing in this section shall prevent a municipal 287
corporation from permitting lawful deductions as prescribed by 288
ordinance. If a taxpayer's taxable income includes income 289
against which the taxpayer has taken a deduction for federal 290
income tax purposes as reportable on the taxpayer's form 2106, 291
and against which a like deduction has not been allowed by the
municipal corporation, the municipal corporation shall deduct 292
from the taxpayer's taxable income an amount equal to the 293
deduction shown on such form allowable against such income, to 294
the extent not otherwise so allowed as a deduction by the 295
municipal corporation. In the case of a taxpayer who has a net
profit from a business or profession that is operated as a sole 296
proprietorship, no municipal corporation may tax or use as the 297
base for determining the amount of the net profit that shall be 298
considered as having a taxable situs in the municipal 299
corporation, a greater amount than the net profit reported by the
taxpayer on schedule C filed in reference to the year in question 300
8
as taxable income from such sole proprietorship, except as 301
otherwise specifically provided by ordinance or regulation. 302
(F) No municipal corporation shall tax any of the 304
following:
(1) The military pay or allowances of members of the armed 306
forces of the United States and of members of their reserve 307
components, including the Ohio national guard; 308
(2) The income of religious, fraternal, charitable, 310
scientific, literary, or educational institutions to the extent 311
that such income is derived from tax-exempt real estate, 312
tax-exempt tangible or intangible property, or tax-exempt 313
activities;
(3) Except as otherwise provided in division (G) of this 315
section, intangible income; 316
(4) Compensation paid under section 3501.28 or 3501.36 of 318
the Revised Code to a person serving as a precinct election 319
official, to the extent that such compensation does not exceed 320
one thousand dollars annually. Such compensation in excess of 321
one thousand dollars may be subjected to taxation by a municipal
corporation. A municipal corporation shall not require the payer 322
of such compensation to withhold any tax from that compensation. 323
(5) Compensation paid to an employee of a transit 325
authority, regional transit authority, or regional transit 326
commission created under Chapter 306. of the Revised Code for 327
operating a transit bus or other motor vehicle for the authority 328
or commission in or through the municipal corporation, unless the
bus or vehicle is operated on a regularly scheduled route, the 329
operator is subject to such a tax by reason of residence or 330
domicile in the municipal corporation, or the headquarters of the 331
authority or commission is located within the municipal 332
corporation.
(6) The income of a public utility when that public 335
utility is subject to the tax levied under section 5727.30 of the 336
Revised Code, EXCEPT STARTING JANUARY 1, 2002, THE INCOME OF AN 337
9
ELECTRIC COMPANY OR COMBINED COMPANY, AS DEFINED IN SECTION 338
5727.01 OF THE REVISED CODE, MAY BE TAXED BY A MUNICIPAL 339
CORPORATION. FOR A COMBINED COMPANY, ONLY THE INCOME ATTRIBUTED 340
FROM THE ACTIVITY OF AN ELECTRIC COMPANY SHALL BE SUBJECT TO
TAXATION BY A MUNICIPAL CORPORATION. THE INCOME OF AN ELECTRIC 341
COMPANY OR COMBINED COMPANY SUBJECT TO TAXATION BY A MUNICIPAL 342
CORPORATION SHALL BE COMPUTED BY TAKING INTO ACCOUNT THE 343
ADJUSTMENTS PROVIDED BY DIVISION (I)(16) OF SECTION 5733.04 OF 344
THE REVISED CODE. 345
(G) Any municipal corporation that taxes any type of 347
intangible income on March 29, 1988, pursuant to Section 3 of 348
Amended Substitute Senate Bill No. 238 of the 116th general 349
assembly, may continue to tax that type of income after 1988 if a 350
majority of the electors of the municipal corporation voting on 351
the question of whether to permit the taxation of that type of
intangible income after 1988 vote in favor thereof at an election 352
held on November 8, 1988. 353
(H) Nothing in this section or section 718.02 of the 355
Revised Code, shall authorize the levy of any tax on income which 357
THAT a municipal corporation is not authorized to levy under 359
existing laws or shall require a municipal corporation to allow a 360
deduction from taxable income for losses incurred from a sole 361
proprietorship or partnership.
Sec. 1551.33. (A) The director of development shall 370
appoint and fix the compensation of the director of the Ohio coal 371
development office established under section 1551.32 of the 372
Revised Code. The director of the office shall serve at the 373
pleasure of the director of development. 374
(B) The director of the office shall do all of the 376
following:
(1) Biennially prepare and maintain the Ohio coal 378
development agenda required under section 1551.34 of the Revised 379
Code; 380
(2) Propose and support policies for the office consistent 382
10
with the Ohio coal development agenda and develop means to 383
implement the agenda; 384
(3) Apportion for the office's administrative costs no 386
more than ten per cent of the moneys credited to the Ohio coal 387
development fund created under section 1551.36 of the Revised 388
Code; 389
(4) Initiate, undertake, and support projects to carry out 391
the office's purposes and ensure that the projects are consistent 392
with and meet the selection criteria established by the Ohio coal 393
development agenda; 394
(5) Actively encourage joint participation in and, when 396
feasible, joint funding of the office's projects with 397
governmental agencies, electric utilities, universities and 398
colleges, other public or private interests, or any other person; 399
(6) Establish a table of organization for and employ such 401
employees and agents as are necessary for the administration and 402
operation of the office; 403
(7) Appoint specified members of and convene the technical 405
advisory committee established under section 1551.35 of the 406
Revised Code; 407
(8) Review, with the assistance of the technical advisory 409
committee, proposed coal research and development projects as 410
defined in section 1555.01 of the Revised Code, and coal 411
development projects, submitted to the office by public utilities 412
for the purposes PURPOSE of sections 4905.301, SECTION 4905.304, 414
and 4909.191 of the Revised Code. If the director and the 415
advisory committee determine that any such facility or project 416
has as its purpose the enhanced use of Ohio coal in an 417
environmentally acceptable, cost effective manner, promotes 418
energy conservation, is cost effective, and is environmentally 419
sound, the director shall submit to the public utilities 420
commission a report recommending that the commission allow the 421
recovery of costs associated with the facility or project under 422
section 4905.301, 4905.304, or 4909.191 of the Revised Code and 423
11
including the reasons for the recommendation; 424
(9) Establish such policies, procedures, and guidelines as 426
are necessary to achieve the office's purposes. 427
(C) With the approval of the director of development, the 429
director of the office may exercise any of the powers and duties 430
of the director of development as the directors consider 431
appropriate or desirable to achieve the office's purposes, 432
including, but not limited to, the powers and duties enumerated 433
in sections 1551.11, 1551.12, 1551.13, and 1551.15 of the Revised 434
Code. 435
Additionally, the director of the office may make loans to 437
governmental agencies or persons for projects to carry out the 438
office's purposes. Fees, charges, rates of interest, times of 439
payment of interest and principal, and other terms, conditions, 440
and provisions of the loans shall be such as the director of the 441
office determines to be appropriate and in furtherance of the 442
purposes for which the loans are made. The mortgage lien 443
securing any moneys lent by the director of the office may be 444
subordinate to the mortgage lien securing any moneys lent or 445
invested by a financial institution, but shall be superior to 446
that securing any moneys lent or expended by any other person. 447
The moneys used in making the loans shall be disbursed upon order 448
of the director of the office. 449
Sec. 1551.35. (A) There is hereby established a technical 458
advisory committee to assist the director of the Ohio coal 459
development office established under section 1551.32 of the 460
Revised Code in achieving the office's purposes. The director 461
shall appoint to the committee one member of the public utilities 462
commission of Ohio and one representative each of coal production 463
companies, the united mine workers of America, electric 464
utilities, manufacturers that use Ohio coal, and environmental 465
organizations, as well as two people with a background in coal 466
research and development technology, one of whom is employed at 467
the time of the member's appointment by a state university, as 469
12
defined in section 3345.011 of the Revised Code. In addition, 470
the committee shall include four legislative members. The 471
speaker and minority leader of the house of representatives each 472
shall appoint one member of the house of representatives, and the 473
president and minority leader of the senate each shall appoint 474
one member of the senate, to the committee. The director of 475
environmental protection, representing the environmental 477
protection agency, the Ohio air quality development authority, 478
and the Ohio water development authority, shall serve on the 479
committee as members ex officio. Any member of the committee may
designate in writing a substitute to serve in the member's 480
absence on the committee. The director of environmental 481
protection may designate in writing the chief of the air 482
pollution control division of the agency to represent the agency. 483
Members shall serve on the committee at the pleasure of their 484
appointing authority. Members of the committee appointed by the 485
director of the office and, notwithstanding section 101.26 of the 486
Revised Code, legislative members of the committee, when engaged 487
in their official duties as members of the committee, shall be 488
compensated on a per diem basis in accordance with division (J) 489
of section 124.15 of the Revised Code, except that the member of 490
the public utilities commission of Ohio and, while employed by a 491
state university, the member with a background in coal research, 492
shall not be so compensated. Members shall receive their actual 493
and necessary expenses incurred in the performance of their 494
duties.
(B) The technical advisory committee shall review and make 496
recommendations concerning the Ohio coal development agenda 497
required under section 1551.34 of the Revised Code, project 498
proposals, research and development projects submitted to the 499
office by public utilities for the purposes PURPOSE of sections 501
4905.301, SECTION 4905.304, and 4909.191 of the Revised Code, 502
proposals for grants, loans, and loan guarantees for purposes of 503
sections 1555.01 to 1555.06 of the Revised Code, and such other 504
13
topics as the director of the office considers appropriate. 505
(C) The technical advisory committee may hold an executive 507
session at any regular or special meeting for the purpose of 508
considering research and development project proposals or 509
applications for assistance submitted to the Ohio coal 510
development office under section 1551.33, or sections 1555.01 to 511
1555.06, of the Revised Code, to the extent that such proposals 512
or applications consist of trade secrets or other proprietary 513
information. 514
Any materials or data submitted to, made available to, or 516
received by the director of development or the director of the 517
Ohio coal development office in connection with agreements for 518
assistance entered into under this chapter or Chapter 1555. of 520
the Revised Code, or any information taken from such materials or 521
data for any purpose, to the extent that the materials or data 522
consist of trade secrets or other proprietary information, are 523
not public records for the purposes of section 149.43 of the 524
Revised Code.
As used in this division, "trade secrets" has the same 526
meaning as in section 1333.61 of the Revised Code. 527
Sec. 3317.028. (A) On or before the fifteenth day of May 536
in each calendar year, the tax commissioner shall determine for 537
each school district whether the taxable value of all tangible 538
personal property, including utility tangible personal property, 539
subject to taxation by the district in the preceding tax year was 540
less or greater than the taxable value of such property during 541
the second preceding tax year. If any such decrease exceeds five 542
per cent of the district's tangible personal property taxable 543
value included in the total taxable value used in the district's 544
state aid computation for the fiscal year that ends in the 545
current calendar year, or if any such increase exceeds five per 546
cent of the district's total taxable value used in the district's 547
state aid computation for the fiscal year that ends in the 548
current calendar year, the tax commissioner shall certify BOTH OF 549
14
THE FOLLOWING to the department of education: 551
(A)(1) The taxable value of the tangible personal property 553
increase or decrease, including utility tangible personal 554
property increase or decrease, which shall be considered a change 555
in valuation; and 556
(B)(2) The decrease or increase in taxes charged and 558
payable on such change in taxable value calculated in the same 559
manner as in division (A)(3) of section 3317.021 of the Revised 560
Code.
(B) NOTWITHSTANDING DIVISION (A) OF THIS SECTION, WHEN 564
DETERMINING UNDER THAT DIVISION IN CALENDAR YEAR 2002 WHETHER THE 565
TAXABLE VALUE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAXATION 566
BY EACH SCHOOL DISTRICT IN THE PRECEDING TAX YEAR WAS LESS OR 567
GREATER THAN THE TAXABLE VALUE OF SUCH PROPERTY DURING THE SECOND 568
PRECEDING TAX YEAR, THE TAX COMMISSIONER SHALL EXCLUDE FROM THE 569
TAXABLE VALUE FOR BOTH YEARS THE TAX VALUE LOSS, AS DEFINED IN 570
SECTION 5727.84 OF THE REVISED CODE.
(C) Upon receipt of such certification, the department of 572
education shall reduce or increase by the respective amounts 573
certified, the taxable value and the taxes charged and payable 574
that were used in the district's state aid computation under 575
section 3317.022 of the Revised Code for the fiscal year that 577
ends in the current calendar year and shall recompute the state 578
aid for such fiscal year. During the last six months of the 579
fiscal year, the department shall pay the district a sum equal to 580
one-half of the recomputed payments in lieu of the payments 581
otherwise required under such sections.
Sec. 4905.01. As used in this chapter: 590
(A) "Railroad" has the meaning set forth in section 592
4907.02 of the Revised Code. 593
(B) "Motor transportation company" has the meaning set 595
forth in sections 4905.03 and 4921.02 of the Revised Code. 596
(C) "Trailer," "public highway," "fixed termini," "regular 598
route," and "irregular route" have the meanings set forth in 599
15
section 4921.02 of the Revised Code. 600
(D) "Private motor carrier," "contract carrier by motor 602
vehicle," "motor vehicle," and "charter party trip" have the 603
meanings set forth in section 4923.02 of the Revised Code. 604
(E) "Delivery cost" means the cost of delivery of fuel, to 606
be used for the generation of electricity, from the site of 607
production directly to the site of an electric generating 608
facility. 609
(F) "Acquisition cost" means the cost to an electric light 611
company of acquiring fuel for generation of electricity. In the 612
case of a fuel supply owned by the company, such term shall also 613
include the cost of legally extracting the fuel and its handling 614
prior to its shipment to the company. In the case of a coal 615
supply owned or controlled in whole or in part by the company, 616
such term shall not exceed a price that is, in the judgment of 617
the public utilities commission, reasonable when compared to the 618
average cost per million British thermal units of similar quality 619
coal purchased from all independent like mining operations under 620
similar term contracts during the same period. In determining a 621
reasonable price for coal from a coal supply owned or controlled 622
in whole or in part by the company, the public utilities 623
commission shall consider the use of: 624
(1) Capital by the developer of the mining operation in a 626
manner that did not: 627
(a) Take into account intermediate or long-term trends in 629
the coal mining industry; or 630
(b) Incorporate a design consistent with long-term 632
dependability; and 633
(c) Take into account the intermediate or long-term cost 635
and reliable energy supply interests of the company's customers; 636
or 637
(2) Ineffective operating techniques. Such term does not 639
embrace any associated cost, including, but not limited to, 640
delivery cost, the cost of handling the fuel after its delivery 641
16
to such facility, the cost of such processing, readying, or 642
refinement of the fuel as may be necessary in order to use the 643
fuel to generate electricity, or the cost of disposing of any 644
residue of such fuel after it has been so used. To the extent 645
the washing of coal is required, by law or rule, to remove or 646
reduce sulfur compounds or any other impurity, "acquisition cost" 647
includes the cost of such washing. 648
(G) "Fuel component" means acquisition and delivery costs 650
of fuel for the generation of electricity, including the 651
allowable costs of purchased power as defined in section 4909.159 652
of the Revised Code, divided by the corresponding number of net 653
kilowatt hours generated and purchased. 654
(H) "Base period" means the most recent six-month period 656
for which the public utilities commission has determined either 657
the amount of the fuel component or the fuel cost per kilowatt 658
hour included in the base rates of an electric light company, 659
whichever is last determined. 660
(I) "Current period" means the six-month period 662
immediately succeeding the base period for which the public 663
utilities commission has determined the amount of the fuel 664
component in the base rate of an electric light company. 665
(J) "Ohio coal research and development costs" means all 667
reasonable costs associated with a facility or project undertaken 668
by a public utility for which a recommendation to allow the 669
recovery of costs associated therewith has been made under 670
division (B)(8) of section 1551.33 of the Revised Code, 671
including, but not limited to, capital costs, such as costs of 672
debt and equity; construction and operation costs; termination 673
and retirement costs; costs of feasibility and marketing studies 674
associated with the project; and the acquisition and delivery 675
costs of Ohio coal used in the project, less any expenditures of 676
grant moneys. 677
(K) "Compliance facility" means property that is designed, 679
constructed, or installed, and used, at a coal-fired electric 680
17
generating facility for the primary purpose of complying with 681
Phase I acid rain control requirements under Title IV of the 682
"Clean Air Act Amendments of 1990," 104 Stat. 2584, 42 U.S.C.A. 683
7651, and that controls or limits emissions of sulfur or nitrogen 684
compounds resulting from the combustion of coal through the 685
removal or reduction of those compounds before, during, or after 686
the combustion of the coal, but before the combustion products 687
are emitted into the atmosphere. "Compliance facility" also 688
includes any of the following: 689
(1) A facility that removes sulfur compounds from coal 691
before the combustion of the coal and that is located off the 692
premises of the electric generating facility where the coal 693
processed by the compliance facility is burned; 694
(2) Modifications to the electric generating facility 696
where the compliance facility is constructed or installed that 697
are necessary to accommodate the construction or installation, 698
and operation, of the compliance facility; 699
(3) A byproduct disposal facility, as defined in section 701
3734.051 of the Revised Code, that exclusively disposes of wastes 702
produced by the compliance facility and other coal combustion 703
byproducts produced by the generating unit in or to which the 704
compliance facility is incorporated or connected regardless of 705
whether the byproduct disposal facility is located on the same 706
premises as the compliance facility or generating unit that 707
produces the wastes disposed of at the facility; 708
(4) Facilities or equipment that is acquired, constructed, 710
or installed, and used, at a coal-fired electric generating 711
facility exclusively for the purpose of handling the byproducts 712
produced by the compliance facility or other coal combustion 713
byproducts produced by the generating unit in or to which the 714
compliance facility is incorporated or connected. 715
Sec. 4905.03. As used in this chapter: 732
(A) Any person, firm, copartnership, voluntary 734
association, joint-stock association, company, or corporation, 735
18
wherever organized or incorporated, is: 736
(1) A telegraph company, when engaged in the business of 738
transmitting telegraphic messages to, from, through, or in this 739
state; 740
(2) A telephone company, when engaged in the business of 742
transmitting telephonic messages to, from, through, or in this 743
state and as such is a common carrier; 744
(3) A motor transportation company, when engaged in the 746
business of carrying and transporting persons or property or the 747
business of providing or furnishing such transportation service, 748
for hire, in or by motor-propelled vehicles of any kind, 749
including trailers, for the public in general, over any public 750
street, road, or highway in this state, except as provided in 751
section 4921.02 of the Revised Code; 752
(4) An electric light company, when engaged in the 754
business of supplying electricity for light, heat, or power 755
purposes to consumers within this state, INCLUDING SUPPLYING 756
ELECTRIC TRANSMISSION SERVICE FOR ELECTRICITY DELIVERED TO 757
CONSUMERS IN THIS STATE, BUT EXCLUDING A REGIONAL TRANSMISSION 758
ORGANIZATION APPROVED BY THE FEDERAL ENERGY REGULATORY 759
COMMISSION;
(5) A gas company, when engaged in the business of 761
supplying artificial gas for lighting, power, or heating purposes 762
to consumers within this state or when engaged in the business of 763
supplying artificial gas to gas companies or to natural gas 764
companies within this state, but a producer engaged in supplying 765
to one or more gas or natural gas companies, only such artificial 767
gas as is manufactured by that producer as a by-product of some 768
other process in which the producer is primarily engaged within 769
this state is not thereby a gas company. All rates, rentals, 770
tolls, schedules, charges of any kind, or agreements between any 771
gas company and any other gas company or any natural gas company 772
providing for the supplying of artificial gas and for 773
compensation for the same are subject to the jurisdiction of the 774
19
public utilities commission.
(6) A natural gas company, when engaged in the business of 776
supplying natural gas for lighting, power, or heating purposes to 777
consumers within this state. Notwithstanding the above, neither 779
the delivery nor sale of Ohio-produced natural gas by a producer 781
or gatherer under a public utilities commission-ordered
exemption, adopted before, as to producers, or after, as to 783
producers or gatherers, January 1, 1996, or the delivery or sale 784
of Ohio-produced natural gas by a producer or gatherer of 785
Ohio-produced natural gas, either to a lessor under an oil and 787
gas lease of the land on which the producer's drilling unit is 788
located, or the grantor incident to a right-of-way or easement to 789
the producer or gatherer, shall cause the producer or gatherer to 790
be a natural gas company for the purposes of this section. 791
All rates, rentals, tolls, schedules, charges of any kind, 794
or agreements between a natural gas company and other natural gas 795
companies or gas companies providing for the supply of natural 796
gas and for compensation for the same are subject to the 797
jurisdiction of the public utilities commission. The commission, 798
upon application made to it, may relieve any producer or gatherer 799
of natural gas, defined in this section as a gas company or a 801
natural gas company, of compliance with the obligations imposed 802
by this chapter and Chapters 4901., 4903., 4907., 4909., 4921., 804
and 4923. of the Revised Code, so long as the producer or 805
gatherer is not affiliated with or under the control of a gas 806
company or a natural gas company engaged in the transportation or 808
distribution of natural gas, or so long as the producer or 809
gatherer does not engage in the distribution of natural gas to 810
consumers.
Nothing in division (A)(6) of this section limits the 812
authority of the commission to enforce sections 4905.90 to 813
4905.96 of the Revised Code.
(7) A pipe-line company, when engaged in the business of 815
transporting natural gas, oil, or coal or its derivatives through 816
20
pipes or tubing, either wholly or partly within this state; 817
(8) A water-works company, when engaged in the business of 819
supplying water through pipes or tubing, or in a similar manner, 820
to consumers within this state; 821
(9) A heating or cooling company, when engaged in the 823
business of supplying water, steam, or air through pipes or 824
tubing to consumers within this state for heating or cooling 825
purposes; 826
(10) A messenger company, when engaged in the business of 828
supplying messengers for any purpose; 829
(11) A street railway company, when engaged in the 831
business of operating as a common carrier, a railway, wholly or 832
partly within this state, with one or more tracks upon, along, 833
above, or below any public road, street, alleyway, or ground, 834
within any municipal corporation, operated by any motive power 835
other than steam and not a part of an interurban railroad, 836
whether the railway is termed street, inclined-plane, elevated, 838
or underground railway; 839
(12) A suburban railroad company, when engaged in the 841
business of operating as a common carrier, whether wholly or 842
partially within this state, a part of a street railway 843
constructed or extended beyond the limits of a municipal 844
corporation, and not a part of an interurban railroad; 845
(13) An interurban railroad company, when engaged in the 847
business of operating a railroad, wholly or partially within this 848
state, with one or more tracks from one municipal corporation or 849
point in this state to another municipal corporation or point in 850
this state, whether constructed upon the public highways or upon 851
private rights-of-way, outside of municipal corporations, using 852
electricity or other motive power than steam power for the 853
transportation of passengers, packages, express matter, United 854
States mail, baggage, and freight. Such an interurban railroad 855
company is included in the term "railroad" as used in section 856
4907.02 of the Revised Code. 857
21
(14) A sewage disposal system company, when engaged in the 859
business of sewage disposal services through pipes or tubing, and 860
treatment works, or in a similar manner, within this state. 861
(B) "Motor-propelled vehicle" means any automobile, 863
automobile truck, motor bus, or any other self-propelled vehicle 864
not operated or driven upon fixed rails or tracks. 865
Nothing in this section shall be construed to mean that an 867
electric light company operated not for profit, owned and 868
operated exclusively by and solely for its customers, or owned or 869
operated by a municipal corporation, is subject to sections 870
4905.66, 4905.67, 4905.68, and 4905.69 of the Revised Code. 871
Sec. 4905.10. (A) For the sole purpose of maintaining and 880
administering the public utilities commission and exercising its 881
supervision and jurisdiction over the railroads and public 882
utilities of the state, an amount equivalent to the appropriation 883
from the public utilities fund CREATED UNDER DIVISION (B) OF THIS 884
SECTION to the public utilities commission for railroad and 886
public utilities regulation in each fiscal year shall be 887
apportioned among and assessed against the railroads EACH 888
RAILROAD and public utilities UTILITY within the state by the 890
commission by first computing an assessment as though it were to 891
be made in proportion to the intrastate gross earnings or 892
receipts, excluding earnings or receipts from sales to other 893
public utilities for resale, of the railroads and RAILROAD OR 894
public utilities UTILITY for the calendar year next preceding 895
that in which the assessments are ASSESSMENT IS made. The 897
COMMISSION MAY INCLUDE IN THAT FIRST COMPUTATION ANY AMOUNT OF A 899
RAILROAD'S OR PUBLIC UTILITY'S INTRASTATE GROSS EARNINGS OR
RECEIPTS THAT WERE UNDERREPORTED IN A PRIOR YEAR. IN ADDITION TO 900
WHATEVER PENALTIES APPLY UNDER THE REVISED CODE TO SUCH 901
UNDERREPORTING, THE COMMISSION SHALL ASSESS THE RAILROAD OR 903
PUBLIC UTILITY INTEREST AT THE RATE STATED IN DIVISION (A) OF 904
SECTION 1343.01 OF THE REVISED CODE. THE COMMISSION SHALL 906
DEPOSIT ANY INTEREST SO COLLECTED INTO THE PUBLIC UTILITIES FUND. 907
22
THE final computation of the assessment shall consist of 912
imposing upon each railroad and public utility whose assessment 913
under the first computation would have been fifty dollars or less 914
an assessment of fifty dollars and recomputing the assessment 915
ASSESSMENTS of the remaining railroads and public utilities by 917
apportioning an amount equal to the appropriation to the public 918
utilities commission for administration of the utilities division 919
in each fiscal year less the total amount to be recovered from 920
those paying the minimum assessment, in proportion to the 921
intrastate gross earnings or receipts of the remaining railroads 922
and public utilities for the calendar year next preceding that in 923
which the assessments are made.
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 925
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 926
ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF THE REVISED 927
CODE, OR AN ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 928
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 929
4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE THOSE 930
SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 931
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 932
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE COMMISSION 933
PURSUANT TO DIVISION (F) OF SECTION 4928.06 OF THE REVISED CODE, 934
AND VERIFIED BY THE COMMISSION. 935
(B) On or before the first day of October in each year, 937
the commission shall notify each such railroad and public utility 938
of the sum assessed against it, whereupon payment shall be made 939
to the commission, which shall deposit it into the state treasury 940
to the credit of the public utilities fund, which is hereby 942
created. Any such amounts paid into the fund but not expended by 943
the commission shall be credited ratably, after first deducting 944
any deficits accumulated from prior years, by the commission to 945
railroads and public utilities that pay more than the minimum 946
assessment, according to the respective portions of such sum 947
assessable against them for the ensuing calendar year. The 948
23
assessments for such calendar year shall be reduced 949
correspondingly. 950
(C) Within five days after the beginning of each fiscal 952
year, the director of budget and management shall transfer from 953
the general revenue fund to the public utilities fund an amount 954
sufficient for maintaining and administering the public utilities 956
commission and exercising its supervision and jurisdiction over 957
the railroads and public utilities of the state during the first 958
four months of the fiscal year. The director shall transfer the 959
same amount back to the general revenue fund from the public 960
utilities fund at such time as the director determines that the 961
balance of the public utilities fund is sufficient to support the 962
appropriations from the fund for the fiscal year. The director 963
may transfer less than that amount if the director determines 964
that the revenues of the public utilities fund during the fiscal 965
year will be insufficient to support the appropriations from the 966
fund for the fiscal year, in which case the amount not paid back 967
to the general revenue fund shall be payable to the general 968
revenue fund in future fiscal years. 969
(C)(D) FOR THE PURPOSE OF THIS SECTION ONLY, "PUBLIC 971
UTILITY" INCLUDES, IN ADDITION TO AN ELECTRIC UTILITY AS DEFINED 973
IN SECTION 4928.01 OF THE REVISED CODE, AN ELECTRIC SERVICES
COMPANY, AN ELECTRIC COOPERATIVE, OR A GOVERNMENTAL AGGREGATOR 975
SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED 977
CODE, TO THE EXTENT OF THE COMPANY'S, COOPERATIVE'S, OR 978
AGGREGATOR'S ENGAGEMENT IN THE BUSINESS OF SUPPLYING OR ARRANGING 979
FOR THE SUPPLY IN THIS STATE OF ANY RETAIL ELECTRIC SERVICE FOR 980
WHICH IT MUST BE SO CERTIFIED. 981
(E) Each public utilities commissioner shall receive a 983
salary fixed at the level set by pay range 49 under schedule E-2 984
of section 124.152 of the Revised Code. 985
Sec. 4905.14. (A) Every public utility shall file an 994
annual report with the public utilities commission. The report 995
shall be filed at the time and in the form prescribed by the 996
24
commission, shall be duly verified, and shall cover the yearly 997
period fixed by the commission. The commission shall prescribe 998
the character of the information to be embodied in the annual 999
report, and shall furnish to each public utility a blank form for 1,000
it. Every public utility also shall file a copy of the annual 1,001
report with the office of consumers' counsel; the copy shall be 1,002
filed at the same time that the original is filed with the 1,003
commission. If any annual report filed with the commission is 1,004
defective or erroneous, the commission may order that it be 1,005
amended within a prescribed time. Any amendments made pursuant 1,006
to such an order shall be filed with the commission and with the 1,007
office of consumers' counsel. Each annual report filed with the 1,008
commission shall be preserved in the office of the commission. 1,009
The commission may, at any time, require specific answers to 1,010
questions upon which it desires information. 1,011
(B) On the first day of July and the first day of November 1,013
of each year, each gas company, AND natural gas company, and 1,014
electric light company shall file with the commission a report in 1,016
quintuplicate stating: 1,017
(1) The total demand, stated in terms of kilowatt hours or 1,019
cubic feet, that the company projects will be expected of the 1,020
company for the following twelve months; 1,021
(2) With respect to electric light companies, the supply 1,023
of fuel for the generation of electricity that they will possess 1,024
as of the first day of July and the first day of November; 1,025
(3) With respect to gas companies and natural gas 1,027
companies, the THE pertinent details of supply contracts with 1,028
pipeline companies and producers for the following twelve months 1,029
that they have executed and the quantity of the gas that they 1,030
will possess in storage and will be available for delivery as of 1,031
the first day of July and the first day of November; 1,032
(4)(3) Where it appears from a comparison of the 1,034
information reported in division (B)(1) of this section with that 1,035
reported in division (B)(2) or (3) of this section that the total 1,036
25
demand projected by the company for the twelve months following 1,037
the date of the report will exceed the ability of the company to 1,038
furnish it, the means which the company intends to employ in 1,039
order to prevent any interruption or curtailment of service. 1,040
(C) The public utilities commission may require any 1,042
telephone company to file with its annual report, supplementary 1,043
reports of each exchange area owned or operated by it, in such 1,044
detail as the commission may prescribe. Upon request of fifteen 1,045
per cent of the subscribers of any telephone exchange, the public 1,046
utilities commission shall require the report for such exchange 1,047
area. 1,048
Sec. 4905.33. (A) No public utility shall directly or 1,057
indirectly, or by any special rate, rebate, drawback, or other 1,059
device or method, charge, demand, collect, or receive from any 1,060
person, firm, or corporation a greater or lesser compensation for 1,061
any services rendered, or to be rendered, except as provided in 1,062
Chapters 4901., 4903., 4905., 4907., 4909., 4921., AND 4923., and
4925. of the Revised Code, than it charges, demands, collects, or 1,063
receives from any other person, firm, or corporation for doing a 1,064
like and contemporaneous service under substantially the same 1,065
circumstances and conditions. No 1,066
(B) NO public utility shall furnish free service or 1,068
service for less than actual cost for the purpose of destroying 1,070
competition.
Sec. 4905.34. EXCEPT AS PROVIDED IN SECTIONS 4905.33 AND 1,079
4905.35 AND CHAPTER 4928. OF THE REVISED CODE, Chapters 4901., 1,080
4903., 4905., 4907., 4909., 4921., and 4923. of the Revised Code 1,083
do not prevent any public utility or railroad from granting any 1,084
of its property for any public purpose, or granting reduced rates 1,085
or free service of any kind to the United States, to the state or 1,086
any political subdivision of the state, for charitable purposes, 1,087
for fairs or expositions, to a law enforcement officer residing
in free housing provided pursuant to section 3735.43 of the 1,088
Revised Code, or to any officer or employee of such public 1,091
26
utility or railroad or the officer's or employee's family. All 1,092
contracts and agreements made or entered into by such public
utility or railroad for such use, reduced rates, or free service 1,093
are valid and enforcible at law. As used in this section, 1,094
"employee" includes furloughed, pensioned, and superannuated 1,096
employees.
Sec. 4905.40. (A) A public utility or a railroad may, 1,105
when authorized by order of the public utilities commission, 1,106
issue stocks, bonds, notes, and other evidences of indebtedness, 1,107
payable at periods of more than twelve months after their date of 1,108
issuance, when necessary: 1,109
(1) For the acquisition of property, the construction, 1,111
completion, extension, renewal, or improvement of its facilities, 1,112
or the improvement of its service; or 1,113
(2) For reorganization or readjustment of its indebtedness 1,115
and capitalization, for the discharge or lawful refunding of its 1,116
obligation, or for the reimbursement of moneys actually expended 1,117
for such purposes from income or from any other moneys in the 1,118
treasury of the public utility or railroad not secured or 1,119
obtained from the issue of stocks, bonds, notes, or other 1,120
evidences of indebtedness of such public utility or railroad. No 1,121
reimbursement of moneys expended for such purposes from income or 1,122
other moneys in the treasury shall be authorized unless the 1,123
applicant has kept its accounts and vouchers of such expenditures 1,124
in such manner as to enable the commission to ascertain the 1,125
amount and purposes of such expenditures. 1,126
(B) Any public utility, subject to the jurisdiction of the 1,128
commission, may, when authorized by the commission, issue shares 1,129
of common capital stock to acquire or pay for shares of common 1,130
capital stock of a public utility of this or an adjoining state 1,131
whose property is so located as to permit the operation of the 1,132
properties of such utilities as an integrated system if the 1,133
applicant owns, or by this issue will acquire, not less than 1,134
sixty-five per cent of the issued and outstanding common capital 1,135
27
shares of the company whose shares are to be acquired, and if the 1,136
consideration to be capitalized by the acquiring company does not 1,137
exceed the par or stated value at which the shares so acquired 1,138
were issued. 1,139
(C) Any bonds, notes, or other evidences of indebtedness 1,141
payable at periods of more than twelve months after their date 1,142
may be issued as provided in sections 4905.40 to 4905.43 of the 1,144
Revised Code, regardless of the amount of the capital stock of 1,145
the public utility or railroad, subject to the approval of the 1,146
commission of the excess of such bonds, notes, or other evidences 1,147
of indebtedness above the amount of the capital stock of such 1,148
public utility or railroad. 1,149
(D) The commission shall authorize on the best terms 1,151
obtainable such issues of stocks, bonds, and other evidences of 1,152
indebtedness as are necessary to enable any public utility to 1,153
comply with any contract made between such public utility and any 1,154
municipal corporation prior to June 30, 1911. 1,155
(E) The commission may authorize A PUBLIC UTILITY THAT IS 1,157
an electric light company to issue equity securities, or debt 1,159
securities having a term of more than twelve months from the date 1,160
of issuance, for the purpose of yielding to the company the 1,161
capacity to acquire a facility that produces fuel for the 1,162
generation of electricity.
(F) In any proceeding under division (A)(1) of this 1,164
section initiated by a public utility, the commission shall 1,165
determine and set forth in its order: 1,166
(1) Whether the purpose to which the issue or any proceeds 1,168
of it shall be applied was or is reasonably required by the 1,169
utility to meet its present and prospective obligations to 1,170
provide utility service; 1,171
(2) Whether the amount of the issue and the probable cost 1,173
of such stocks, bonds, notes, or other evidences of indebtedness 1,174
is just and reasonable; 1,175
(3) What effect, if any, the issuance of such stocks, 1,177
28
bonds, notes, or other evidences of indebtedness and the cost 1,178
thereof will have upon the present and prospective revenue 1,179
requirements of the utility. 1,180
(G) Sections 4905.40 to 4905.42 of the Revised Code do not 1,182
apply to stocks, bonds, notes, or other evidence of indebtedness 1,183
issued for the purpose of financing oil or natural gas drilling, 1,184
producing, gathering, and associated activities and facilities by 1,185
a producer which supplies to no more than twenty purchasers only 1,186
such gas as is produced, gathered, or purchased by such producer 1,187
within this state. 1,188
(H) Each public utility seeking authorization from the 1,190
commission for the issuance of securities to finance the 1,191
installation, construction, extension, or improvement of an air 1,192
quality facility, as defined in section 3706.01 of the Revised 1,193
Code, shall consider the availability of financing therefor from 1,194
the Ohio air quality development authority and shall demonstrate 1,195
to the commission that the proposed financing will be obtained on 1,196
the best terms obtainable. 1,197
Sec. 4905.402. (A) As used in this section: 1,206
(1) "Control" means the possession of the power to direct 1,208
the management and policies of a domestic telephone company or a 1,209
holding company of a domestic telephone company, OR THE 1,210
MANAGEMENT AND POLICIES OF A DOMESTIC ELECTRIC UTILITY OR A 1,211
HOLDING COMPANY OF A DOMESTIC ELECTRIC UTILITY, through the 1,212
ownership of voting securities, by contract, or otherwise, but 1,213
does not include the power that results from holding an official 1,214
position or the possession of corporate office with the domestic 1,215
telephone company OR UTILITY or THE holding company. Control is 1,217
presumed to exist if any person, directly or indirectly, owns, 1,218
controls, holds the power to vote, or holds with the power to 1,219
vote proxies which THAT constitute, twenty per cent or more of 1,220
the total voting power of the domestic telephone company OR 1,222
UTILITY or THE holding company. 1,223
(2) "ELECTRIC UTILITY" HAS THE SAME MEANING AS IN SECTION 1,225
29
4928.07 OF THE REVISED CODE. 1,226
(3) "Holding company" excludes any securities broker 1,228
performing the usual and customary broker's function. 1,229
(3)(4) "Telephone company" means any company described in 1,231
division (A)(2) of section 4905.03 of the Revised Code that is a 1,232
public utility under section 4905.02 of the Revised Code and 1,233
provides basic local exchange service, as defined in section 1,234
4927.01 of the Revised Code. 1,235
(B) No person shall acquire control, directly or 1,237
indirectly, of a domestic telephone company or a holding company 1,238
controlling a domestic telephone company OR OF A DOMESTIC 1,239
ELECTRIC UTILITY OR A HOLDING COMPANY CONTROLLING A DOMESTIC 1,240
ELECTRIC UTILITY unless that person obtains the prior approval of 1,242
the public utilities commission under this section. To obtain 1,243
approval the person shall file an application with the commission 1,244
demonstrating that the acquisition will promote public 1,245
convenience and result in the provision of adequate service for a 1,246
reasonable rate, rental, toll, or charge. The application shall 1,247
contain such information as the commission may require. If the 1,248
commission considers a hearing necessary, it may fix a time and 1,249
place for hearing. If, after review of the application and after 1,250
any necessary hearing, the commission is satisfied that approval 1,251
of the application will promote public convenience and result in 1,252
the provision of adequate service for a reasonable rate, rental, 1,253
toll, or charge, the commission shall approve the application and 1,254
make such order as it considers proper. If the commission fails 1,255
to issue an order within thirty days of the filing of the 1,256
application, or within twenty days of the conclusion of a 1,257
hearing, if one is held, the application shall be deemed approved 1,258
by operation of law. 1,259
(C) The public utilities commission shall adopt such rules 1,261
as it finds necessary to carry out this section. 1,262
(D) If it appears to the public utilities commission or to 1,264
any person who THAT may be adversely affected that any person is 1,265
30
engaged in or about to engage in any acts or practices that would 1,266
violate this section, the attorney general, when directed to do 1,267
so by the commission, or the person claiming to be adversely 1,268
affected may bring an action in any court of common pleas that 1,269
has jurisdiction and venue to enjoin such acts or practices and 1,270
enforce compliance with this section. Upon a proper showing, the 1,271
court shall grant, without bond, a restraining order or temporary 1,272
or permanent injunction. 1,273
(E) The courts of this state have jurisdiction over every 1,275
person not a resident of or domiciled or authorized to do 1,276
business in this state who THAT files, or is prohibited from 1,277
acting without first filing, an application under division (B) of 1,279
this section, and over all actions involving such person arising 1,280
out of violations of this section. The secretary of state shall 1,281
be the agent for service of process for any such person in any 1,282
action, suit, or proceeding arising out of violations of this 1,283
section. Copies of all such lawful process shall be served upon 1,284
the secretary of state and transmitted by certified mail, with 1,285
return receipt requested, by the secretary of state to such 1,286
person at his THE PERSON'S last known address. 1,287
Sec. 4905.42. To determine whether it should issue the 1,296
order referred to in section 4905.40 of the Revised Code, the 1,297
public utilities commission shall hold such hearings, make such 1,298
inquiries or investigations, and examine such witnesses, books, 1,299
papers, documents, and contracts as it deems proper. Within 1,300
forty-five days after an electric light company submits an 1,301
application under that section pertaining to the issuance of 1,302
stocks, bonds, notes, or other evidence of indebtedness to 1,303
acquire, construct, or install a compliance facility, the 1,304
commission shall complete its review and shall render a decision 1,305
on the application. 1,306
An order issued under this section shall fix the amount, 1,308
character, and terms of any issue of stocks, bonds, notes, or 1,309
other evidence of indebtedness, and the purposes to which the 1,310
31
issue or any proceeds of it shall be applied, shall recite that 1,311
the money, property, consideration, or labor procured or to be 1,312
procured or paid for by such issue was or is reasonably required 1,313
for the purposes specified in the order, and shall recite the 1,314
value of any property, consideration, or service, as found by the 1,315
commission, for which in whole or in part such issue is proposed 1,316
to be made. 1,317
No public utility or railroad shall, without the consent of 1,319
the commission, apply any such issue or its proceeds to any 1,320
purpose not specified in the order. Such public utilities or 1,321
railroads may issue notes for proper corporate purposes, payable 1,322
at periods of not more than twelve months, without the consent of 1,323
the commission, but no such notes shall, in whole or in part, 1,324
directly or indirectly, be refunded by any issue of stocks or 1,325
bonds, or by any evidence of indebtedness, running for more than 1,326
twelve months, without the consent of the commission. 1,327
All stocks, bonds, notes, or other evidence of indebtedness 1,329
issued by any public utility or railroad without the permission 1,330
of the commission are void. No interstate railroad or public 1,331
utility shall be required to apply to the commission for 1,332
authority to issue stocks, bonds, notes, or other evidence of 1,333
indebtedness for the acquisition of property, the construction, 1,334
completion, extension, or improvement of its facilities, or the 1,335
improvement or maintenance of its service outside this state, or 1,336
for authority for the discharge or refunding of obligations 1,337
issued or incurred for such purposes or the reimbursement of 1,338
moneys actually expended for such purposes outside this state. 1,339
No pipe-line company--when engaged in the business of 1,341
transporting oil through pipes or tubing, either wholly or 1,342
partly--within this state, shall be required to apply to the 1,343
commission for authority to issue stocks, bonds, notes, or other 1,344
evidence of indebtedness for the purpose of acquiring or paying 1,345
for stocks, bonds, notes, or other evidence of indebtedness of 1,346
any other corporation organized under the laws of this state, any 1,347
32
other state, the District of Columbia, the United States, any 1,348
territory of the United States, any foreign country, or 1,349
otherwise. 1,350
No company that is both a pipe-line company engaged as such 1,352
in the business of transporting natural gas through pipes or 1,353
tubing in interstate commerce, wholly or partly within this 1,354
state, and a natural gas company engaged as such in this state 1,355
solely in the business of supplying natural gas to gas companies 1,356
or to natural gas companies shall be required to apply to the 1,357
commission for authority to issue stocks, bonds, notes, or other 1,358
evidence of indebtedness. 1,359
Sec. 4905.46. (A) No public utility or railroad shall 1,368
declare any stock, bond, or scrip dividend or distribution, or 1,369
divide the proceeds of the sale of any stock, bond, or scrip 1,370
among its stockholders, unless it is authorized to do so by the 1,371
public utilities commission. 1,372
(B) Unless it is authorized to do so by the commission: 1,374
(1) No public utility which is a part of an electric 1,376
utility holding company system exempt under section 3(a)(1) or 1,377
(2) of the "Public Utility Holding Company Act of 1935," 49 Stat. 1,378
803, 15 U.S.C. 79c, and the rules and regulations promulgated 1,379
thereunder, shall invest in, lend funds to, guarantee the 1,380
obligations of, otherwise finance, or transfer assets to any 1,381
company which is not a public utilty as defined by Ohio law or 1,382
the law of any other state, and which is affiliated or associated 1,383
with it in the same holding company system. This limitation on 1,384
investments, loans, guarantees, or other financing does not apply 1,385
to transactions in the ordinary course of the companies' public 1,386
utilities business operations in which one entity acts on behalf 1,387
of, or with respect to, another within the holding company 1,388
system. 1,389
(2) No electric utility holding company exempt under 1,391
section 3(a)(1) or (2) of the "Public Utility Holding Company Act 1,392
of 1935," 49 Stat. 803, 15 U.S.C. 79c, and the rules and 1,393
33
regulations promulgated thereunder, which directly owns, controls 1,394
or holds with the power to vote ten per cent or more of the 1,395
outstanding voting securities of an electric light company, or is 1,396
itself an electric light company, shall make any investment, 1,397
including loans, in any subsidiary, affiliate, or associate that 1,398
is not a public utility as defined by Ohio law or the law of 1,399
another state, that would cause the company's capital investments 1,400
in all such non-utility subsidiaries, affiliates, and associates 1,401
to exceed, at the time such proposed investment is made, fifteen 1,402
per cent or more of the aggregate capitalization of the holding 1,403
company on a consolidated basis. This limitation, however, does 1,404
not extend to investments made with funds provided from 1,405
nonutility subsidiaries, affiliates, or associates. 1,406
(C) The commission shall not approve a transfer of assets 1,408
subject to division (B)(1) of this section for at least 1,409
forty-five days after an application for approval has been filed 1,410
with it, in order to afford interested persons the opportunity to 1,411
submit objections to approval of the application and to request a 1,412
public hearing. If the commission, after such forty-five day 1,413
period but within one hundred thirty-five days after the 1,414
application was filed, does not disapprove the application, the 1,415
application shall be deemed approved. 1,416
(D) Nothing in division (B) or (C) of this section affects 1,417
the authority of a public utility or railroad to declare and pay 1,418
interest or dividends on, or otherwise act with respect to, 1,419
stocks, bonds, notes, or other evidences of indebtedness once 1,420
issued pursuant to sections 4905.40 to 4905.42 of the Revised 1,421
Code. 1,422
(E) No telephone company shall declare any cash, stock, 1,424
bond, or scrip dividend or distribution, or divide the proceeds 1,425
of the sale of any stock, bond, or scrip among its common or 1,426
voting shareholders, while such telephone company is in violation 1,427
of any order of the commission, or against which telephone 1,428
company there exists a finding of inadequate service, except when 1,429
34
the public utilities commission makes a finding after hearing and 1,430
notice, as provided in section 4905.26 of the Revised Code, that 1,431
such dividend or distribution will in no way postpone compliance 1,432
with any order or affect the adequacy of service rendered or to 1,433
be rendered by such telephone company. Provided that if IF a 1,434
telephone company, while in violation of any order of the 1,435
commission, or against which there exists a finding of inadequate 1,436
service, desires to declare a cash dividend or distribution 1,437
without the consent of the commission, it shall set aside in a 1,438
special reserve fund a sum of money equivalent to the amount 1,439
necessary to pay the proposed dividend or distribution, which, 1,440
while said company is in violation of said order or against which 1,441
such finding exists, may be expended only with the consent of the 1,442
commission. 1,443
Sec. 4905.70. The public utilities commission shall 1,452
initiate programs that will promote and encourage conservation of 1,453
energy and a reduction in the growth rate of energy consumption, 1,454
promote economic efficiencies, and take into account long-run 1,455
incremental costs. Notwithstanding sections 4905.31, 4905.33, 1,456
4905.35, and 4909.151 of the Revised Code, the public utilities 1,457
commission shall examine and issue written findings on the 1,458
declining block rate structure, lifeline rates, long-run 1,459
incremental pricing, peak load and off-peak pricing, time of day 1,460
and seasonal pricing, interruptible load pricing, and single rate 1,461
pricing where rates do not vary because of classification of 1,462
customers or amount of usage. The public utilities commission 1,463
shall establish criteria for the investigation, identification, 1,464
and remedy of the existence of any excess capacity, exclusive of 1,465
capacity used primarily for Ohio coal research and development, 1,466
as defined in section 1555.01 of the Revised Code, the costs of 1,467
which have been allowed for recovery under section 4905.301 or 1,468
4909.15 of the Revised Code, in the generating systems of 1,469
electric light companies. The public utilities commission, by a 1,470
rule adopted no later than October 1, 1977, and effective and 1,471
35
applicable no later than November 1, 1977, shall require each 1,472
electric light company to offer to such of their residential 1,473
customers whose residences are primarily heated by electricity 1,474
the option of their usage being metered by a demand or load 1,475
meter. A UNDER THE RULE, A customer who selects such option may, 1,477
under the rule, be required by the company, where no such meter 1,478
is already installed, to pay for such meter and its installation. 1,479
The rule shall require each company to bill such of its customers 1,480
who select such option for those kilowatt hours in excess of a 1,481
prescribed number of kilowatt hours per kilowatt of billing 1,482
demand, at a rate per kilowatt hour that reflects the lower cost 1,483
of providing service during off-peak periods. 1,484
Sec. 4906.10. (A) The power siting board shall render a 1,493
decision upon the record either granting or denying the 1,494
application as filed, or granting it upon such terms, conditions, 1,495
or modifications of the construction, operation, or maintenance 1,496
of the major utility facility as the board considers appropriate. 1,497
The certificate shall be conditioned upon the facility being in 1,498
compliance with standards and rules adopted under sections 1,499
1501.33, 1501.34, and 4561.32 and Chapters 3704., 3734., and 1,500
6111. of the Revised Code. The period of initial operation under 1,502
a certificate shall expire two years after the date on which 1,503
electric power is first generated by the facility. During the 1,504
period of initial operation, the facility shall be subject to the 1,505
enforcement and monitoring powers of the director of
environmental protection under Chapters 3704., 3734., and 6111. 1,506
of the Revised Code and to the emergency provisions under those 1,508
chapters. If a major utility facility constructed in accordance 1,509
with the terms and conditions of its certificate is unable to 1,510
operate in compliance with all applicable requirements of state 1,511
laws, rules, and standards pertaining to air pollution, the 1,512
facility may apply to the director of environmental protection 1,513
for a conditional operating permit under division (G) of section 1,514
3704.03 of the Revised Code and the rules adopted thereunder. 1,515
36
The operation of a major utility facility in compliance with a 1,516
conditional operating permit is not in violation of its 1,517
certificate. After the expiration of the period of initial 1,518
operation of a major utility facility, the facility shall be 1,519
under the jurisdiction of the environmental protection agency and 1,520
shall comply with all laws, rules, and standards pertaining to 1,521
air pollution, water pollution, and solid and hazardous waste 1,522
disposal.
The board shall not grant a certificate for the 1,524
construction, operation, and maintenance of a major utility 1,525
facility, either as proposed or as modified by the board, unless 1,526
it finds and determines all of the following: 1,527
(1) The basis of the need for the facility;. IN THE CASE 1,529
OF A MAJOR UTILITY FACILITY DESCRIBED IN DIVISION (B)(1) OF 1,530
SECTION 4906.01 OF THE REVISED CODE TO BE CONSTRUCTED ON OR AFTER 1,531
THE EFFECTIVE DATE OF THIS AMENDMENT, THE BOARD SHALL PRESUME THE 1,533
NEED FOR THE FACILITY AS THAT NEED IS STATED IN AN APPLICATION
PURSUANT TO DIVISION (A)(3) OF SECTION 4906.06 OF THE REVISED 1,534
CODE.
(2) The nature of the probable environmental impact; 1,536
(3) That the facility represents the minimum adverse 1,538
environmental impact, considering the state of available 1,539
technology and the nature and economics of the various 1,540
alternatives, and other pertinent considerations; 1,541
(4) In the case of an electric transmission line, that the 1,543
facility is consistent with regional plans for expansion of the 1,544
electric power grid of the electric systems serving this state 1,545
and interconnected utility systems and that the facility will 1,546
serve the interests of electric system economy and reliability; 1,547
(5) That the facility will comply with Chapters 3704., 1,549
3734., and 6111. of the Revised Code and all rules and standards 1,550
adopted under those chapters and under sections 1501.33, 1501.34, 1,551
and 4561.32 of the Revised Code. In determining whether the 1,552
facility will comply with all rules and standards adopted under 1,553
37
section 4561.32 of the Revised Code, the board shall consult with 1,554
the office of aviation of the division of multi-modal planning 1,556
and programs of the department of transportation under section 1,558
4561.341 of the Revised Code.
(6) That the facility will serve the public interest, 1,560
convenience, and necessity; 1,561
(7) In addition to the provisions contained in divisions 1,563
(A)(1) to (6) of this section and rules adopted under those 1,565
divisions, what its impact will be on the viability as 1,566
agricultural land of any land in an existing agricultural 1,567
district established under Chapter 929. of the Revised Code that 1,568
is located within the site and alternative site of the proposed 1,569
major utility facility. Rules adopted to evaluate impact under 1,570
division (A)(7) of this section shall not require the 1,571
compilation, creation, submission, or production of any 1,572
information, document, or other data pertaining to land not 1,573
located within the site and alternative site. 1,574
(8) That the facility incorporates maximum feasible water 1,576
conservation practices as determined by the board, considering 1,577
available technology and the nature and economics of the various 1,578
alternatives. 1,579
(B) If the board determines that the location of all or a 1,581
part of the proposed facility should be modified, it may 1,582
condition its certificate upon that modification, provided that 1,583
the municipal corporations and counties, and persons residing 1,584
therein, affected by the modification shall have been given 1,585
reasonable notice thereof. 1,586
(C) A copy of the decision and any opinion issued 1,588
therewith shall be served upon each party. 1,589
Sec. 4909.01. As used in this chapter: 1,599
(A) "Public utility" has the meaning set forth in section 1,601
4905.02 of the Revised Code. 1,602
(B) "Telegraph company," "telephone company," "electric 1,604
light company," "gas company," "natural gas company," "pipeline 1,605
38
company," "water-works company," "sewage disposal system 1,606
company," "heating or cooling company," "messenger company," 1,607
"street railway company," "suburban railroad company," 1,608
"interurban railroad company," and "motor-propelled vehicle" have 1,609
the meanings set forth in section 4905.03 of the Revised Code. 1,610
(C) "Railroad" has the meaning set forth in section 1,612
4907.02 of the Revised Code. 1,613
(D) "Motor transportation company" has the meaning set 1,615
forth in sections 4905.03 and 4921.02 of the Revised Code. 1,616
(E) "Trailers," "public highway," "fixed termini," 1,618
"regular route," and "irregular route" have the meanings set 1,619
forth in section 4921.02 of the Revised Code. 1,620
(F) "Private motor carrier," "contract carrier by motor 1,622
vehicle," "motor vehicle," and "charter party trip" have the 1,623
meanings set forth in section 4923.02 of the Revised Code. 1,624
(G) "Delivery cost" and "acquisition cost" have the 1,626
meanings set forth in section 4905.01 of the Revised Code. 1,627
(H) "Compliance facility" has the meaning set forth in 1,629
section 4905.01 of the Revised Code. 1,630
Nothing in this section shall be construed to mean that an 1,632
electric light company operated not for profit or one that is 1,633
owned or operated by a municipal corporation is subject to 1,634
section 4909.191 of the Revised Code. 1,635
Sec. 4909.05. As used in this section: 1,644
(A) A "lease purchase agreement" is an agreement pursuant 1,646
to which a public utility leasing property is required to make 1,647
rental payments for the term of the agreement and either the 1,648
utility is granted the right to purchase the property upon the 1,649
completion of the term of the agreement and upon the payment of 1,650
an additional fixed sum of money or title to the property vests 1,651
in the utility upon the making of the final rental payment. 1,652
(B) A "leaseback" is the sale or transfer of property by a 1,654
public utility to another person contemporaneously followed by 1,655
the leasing of the property to the public utility on a long-term 1,656
39
basis. 1,657
The public utilities commission shall prescribe the form 1,659
and details of the valuation report of the property of each 1,660
public utility or railroad in the state. Such report shall 1,661
include all the kinds and classes of property, with the value of 1,662
each, owned or held by each public utility or railroad used and 1,663
useful for the service and convenience of the public. Such 1,664
report shall contain the following facts in detail: 1,665
(C) The original cost of each parcel of land owned in fee 1,667
and in use at the date certain determined by the commission; and 1,668
also a statement of the conditions of acquisition, whether by 1,669
direct purchase, by donation, by exercise of the power of eminent 1,670
domain, or otherwise; 1,671
(D) The actual acquisition cost, not including periodic 1,673
rental fees, of rights-of-way, trailways, or other land rights 1,674
held by virtue of easements, leases, or other forms of grants of 1,675
rights as to usage; 1,676
(E) The original cost of all other kinds and classes of 1,678
property used and useful in the rendition of service to the 1,679
public. Such original costs of property, other than land owned 1,680
in fee, shall be the cost, as determined to be reasonable by the 1,681
commission, to the person that first dedicated the property to 1,682
the public use and shall be set forth in property accounts and 1,683
subaccounts as prescribed by the commission. To the extent that 1,684
the costs of property comprising a coal research and development 1,685
facility, as defined in section 1555.01 of the Revised Code, or a 1,686
coal development project, as defined in section 1551.30 of the 1,687
Revised Code, have been allowed for recovery as Ohio coal 1,688
research and development costs under section 4905.301, 4905.304, 1,689
or 4909.191 of the Revised Code, none of those costs shall be 1,690
included as a cost of property under this division. 1,691
(F) The cost of property constituting all or part of a 1,693
project leased to or used by the utility under Chapter 165., 1,694
3706., 6121., or 6123. of the Revised Code and not included under 1,695
40
division (E) of this section exclusive of any interest directly 1,696
or indirectly paid by the utility with respect thereto whether or 1,697
not capitalized; 1,698
(G) In the discretion of the commission, the cost to a 1,700
utility, in an amount determined to be reasonable by the 1,701
commission, of property constituting all or part of a project 1,702
leased to the utility under a lease purchase agreement or a 1,703
leaseback and not included under division (E) of this section 1,704
exclusive of any interest directly or indirectly paid by the 1,705
utility with respect thereto whether or not capitalized; 1,706
(H) The proper and adequate reserve for depreciation, as 1,708
determined to be reasonable by the commission; 1,709
(I) Any sums of money or property that the company may 1,711
have received as total or partial defrayal of the cost of its 1,712
property; 1,713
(J) The valuation of the property of the company, which 1,715
shall be the sum of the amounts contained in the report pursuant 1,716
to divisions (C), (D), (E), (F), and (G) of this section, less 1,717
the sum of the amounts contained in the report pursuant to 1,718
divisions (H) and (I) of this section. 1,719
The report shall show separately the property used and 1,721
useful to such public utility or railroad in the furnishing of 1,722
the service to the public, and the property held by such public 1,723
utility or railroad for other purposes, and such other items as 1,724
the commission considers proper. The commission may require an 1,725
additional report showing the extent to which the property is 1,726
used and useful. Such reports shall be filed in the office of 1,727
the commission for the information of the governor and the 1,728
general assembly. 1,729
Sec. 4909.15. (A) The public utilities commission, when 1,738
fixing and determining just and reasonable rates, fares, tolls, 1,739
rentals, and charges, shall determine: 1,740
(1) The valuation as of the date certain of the property 1,742
of the public utility used and useful in rendering the public 1,743
41
utility service for which rates are to be fixed and determined. 1,744
The valuation so determined shall be the total value as set forth 1,745
in division (J) of section 4909.05 of the Revised Code, and a 1,746
reasonable allowance for materials and supplies and cash working 1,747
capital, as determined by the public utilities commission. 1,748
The commission may, in its discretion, MAY include in the 1,750
valuation a reasonable allowance for construction work in 1,751
progress but, in no event, may such an allowance be made by the 1,752
commission until it has determined that the particular 1,753
construction project is at least seventy-five per cent complete. 1,754
In the case of a construction project involving the 1,756
installation, renovation, or maintenance of pollution control 1,757
equipment, the commission may include the project in the 1,758
valuation as construction work in progress as of the date that 1,759
the particular construction project is at least seventy-five per 1,760
cent complete. 1,761
As used in this division, "pollution control equipment" 1,763
means any construction project undertaken, in whole or in part, 1,764
to reduce sulfur or nitrous oxide emissions to levels established 1,765
by federal, state, or local statute, law, ordinance, regulation, 1,766
or order. The commission shall determine by rule what projects 1,767
qualify as pollution control equipment. 1,768
In determining the percentage completion of a particular 1,770
construction project, the commission shall consider, among other 1,771
relevant criteria, the per cent of time elapsed in construction; 1,772
the per cent of construction funds, excluding allowance for funds 1,773
used during construction, expended, or obligated to such 1,774
construction funds budgeted where all such funds are adjusted to 1,775
reflect current purchasing power; and any physical inspection 1,776
performed by or on behalf of any party, including the 1,777
commission's staff. 1,778
A reasonable allowance for construction work in progress 1,780
other than for construction projects involving the installation, 1,781
renovation, or maintenance of pollution control equipment shall 1,782
42
not exceed ten per cent of the total valuation as stated in this 1,783
division, not including such allowance for construction work in 1,784
progress. 1,785
The allowance for construction work in progress for 1,787
construction projects involving the installation, renovation, or 1,788
maintenance of pollution control equipment shall be the dollar 1,789
value of the project and shall not exceed, together with any 1,790
other allowance for construction work in progress granted under 1,791
this division, twenty per cent of the total valuation as stated 1,792
in this division, not including such allowance for construction 1,793
work in progress. 1,794
Where the commission permits an allowance for construction 1,796
work in progress, the dollar value of the project or portion 1,797
thereof included in the valuation as construction work in 1,798
progress shall not be included in the valuation as plant in 1,799
service until such time as the total revenue effect of the 1,800
construction work in progress allowance is offset by the total 1,801
revenue effect of the plant in service exclusion. Carrying 1,802
charges calculated in a manner similar to allowance for funds 1,803
used during construction shall accrue on that portion of the 1,804
project in service but not reflected in rates as plant in 1,805
service, and such accrued carrying charges shall be included in 1,806
the valuation of the property at the conclusion of the offset 1,807
period for purposes of division (J) of section 4909.05 of the 1,808
Revised Code. 1,809
From and after April 10, 1985, no allowance for 1,811
construction work in progress as it relates to a particular 1,812
construction project shall be reflected in rates for a period 1,813
exceeding forty-eight consecutive months commencing on the date 1,814
the initial rates reflecting such allowance become effective, 1,815
except as otherwise provided in this division. 1,816
In the case of a nuclear generating facility that has not 1,818
been granted a full construction permit by the nuclear regulatory 1,819
commission on or before April 10, 1985, the utility, within six 1,820
43
months after the granting of such permit, shall submit to the 1,821
public utilities commission a projected in service date for such 1,822
facility. Thereafter, no allowance for construction work in 1,823
progress as it relates to such nuclear generating facility shall 1,824
be reflected in rates for a period exceeding forty-eight 1,825
consecutive months commencing on the date the initial rates 1,826
reflecting such allowance become effective, or for a period 1,827
commencing on the date the initial rates reflecting such 1,828
allowance become effective and ending on the projected in service 1,829
date previously submitted to the commission, whichever period 1,830
expires first. 1,831
The applicable maximum period in rates for an allowance for 1,833
construction work in progress as it relates to a particular 1,834
construction project shall be tolled if, and to the extent, a 1,835
delay in the in-service date of the project is caused by the 1,836
action or inaction of any federal, state, county, or municipal 1,837
agency having jurisdiction, where such action or inaction relates 1,838
to a change in a rule, standard, or approval of such agency, and 1,839
where such action or inaction is not the result of the failure of 1,840
the utility to reasonably endeavor to comply with any rule, 1,841
standard, or approval prior to such change. 1,842
In the event that such period expires before the project 1,844
goes in INTO service, the commission shall EXCLUDE, from the date 1,846
of expiration, exclude the allowance for the project as 1,847
construction work in progress from rates, except that the 1,848
commission may extend the expiration date up to twelve months for 1,849
good cause shown. 1,850
In the event that a utility has permanently canceled, 1,852
abandoned, or terminated construction of a project for which it 1,853
was previously permitted a construction work in progress 1,854
allowance, the commission shall immediately SHALL exclude the 1,855
allowance for the project from the valuation. 1,857
In the event that a construction work in progress project 1,859
previously included in the valuation is removed from the 1,860
44
valuation pursuant to this division, any revenues collected by 1,861
the utility from its customers after April 10, 1985, which THAT 1,862
resulted from such prior inclusion shall be offset against future 1,863
revenues over the same period of time as the project was included 1,864
in the valuation as construction work in progress. The total 1,865
revenue effect of such offset shall not exceed the total revenues 1,866
previously collected. 1,867
In no event shall the total revenue effect of any offset or 1,869
offsets provided herein UNDER DIVISION (A)(1) OF THIS SECTION 1,871
exceed the total revenue effect of any construction work in 1,872
progress allowance.
(2) A fair and reasonable rate of return to the utility on 1,874
the valuation as determined in division (A)(1) of this section; 1,875
(3) The dollar annual return to which the utility is 1,877
entitled by applying the fair and reasonable rate of return as 1,878
determined under division (A)(2) of this section to the valuation 1,879
of the utility determined under division (A)(1) of this section; 1,880
(4) The cost to the utility of rendering the public 1,882
utility service for the test period less the total of any 1,883
interest on cash or credit refunds paid, pursuant to section 1,884
4909.42 of the Revised Code, by the utility during the test 1,885
period. 1,886
(a) Any depreciation expense of a compliance facility 1,888
shall be calculated under division (A)(4) of this section on the 1,889
basis of the useful service life of the compliance facility or 1,890
the remaining useful life of the electric generating unit in 1,891
connection with which the compliance facility was acquired, 1,892
constructed, or installed, whichever is the shorter time. 1,893
Division (A)(4)(a) of this section applies only to depreciation 1,894
expense of a compliance facility contained in the environmental 1,895
compliance plan of the electric light company approved under 1,896
Chapter 4913. of the Revised Code or in its compliance strategy 1,897
examined under section 4909.158 of the Revised Code. 1,898
(b) Federal, state, and local taxes imposed on or measured 1,901
45
by net income may, in the discretion of the commission, be 1,902
computed by the normalization method of accounting, provided the 1,903
utility maintains accounting reserves that reflect differences 1,904
between taxes actually payable and taxes on a normalized basis, 1,905
provided that no determination as to the treatment in the 1,906
rate-making process of such taxes shall be made that will result 1,908
in loss of any tax depreciation or other tax benefit to which the 1,909
utility would otherwise be entitled, and further provided that 1,910
such tax benefit as redounds to the utility as a result of such a 1,911
computation may not be retained by the company, used to fund any 1,912
dividend or distribution, or utilized for any purpose other than 1,913
the defrayal of the operating expenses of the utility and the 1,914
defrayal of the expenses of the utility in connection with 1,915
construction work.
(c)(b) The amount of any tax credits granted to an 1,917
electric light company under section 5727.391 5733.39 of the 1,918
Revised Code shall not be retained by the company, used to fund 1,920
any dividend or distribution, or utilized for any purposes other 1,921
than the defrayal of the allowable operating expenses of the 1,922
company and the defrayal of the allowable expenses of the company 1,923
in connection with the installation, acquisition, construction, 1,924
or use of a compliance facility. The amount of the tax credits 1,925
granted to an electric light company under that section shall be 1,926
returned to its customers within three years after initially 1,927
claiming the credit through an offset to the company's rates or 1,928
fuel component, as determined by the commission, as set forth in 1,929
schedules filed by the company under section 4905.30 of the 1,930
Revised Code. As used in division (A)(4)(c) of this section, 1,931
"compliance facility" has the same meaning as in section 5727.391 1,932
5733.39 of the Revised Code. 1,934
(B) The public utilities commission shall compute the 1,936
gross annual revenues to which the utility is entitled by adding 1,937
the dollar amount of return under division (A)(3) of this section 1,938
to the cost of rendering the public utility service for the test 1,939
46
period under division (A)(4) of this section. 1,940
(C) The test period, unless otherwise ordered by the 1,942
public utilities commission, shall be the twelve-month period 1,943
beginning six months prior to the date the application is filed 1,944
and ending six months subsequent to that date. In no event shall 1,945
the test period end more than nine months subsequent to the date 1,946
the application is filed. The revenues and expenses of the 1,947
utility shall be determined during the test period. The date 1,948
certain shall be not later than the date of filing. 1,949
(D) When the public utilities commission is of the 1,951
opinion, after hearing and after making the determinations under 1,952
divisions (A) and (B) of this section, that any rate, fare, 1,953
charge, toll, rental, schedule, classification, or service, or 1,954
any joint rate, fare, charge, toll, rental, schedule, 1,955
classification, or service rendered, charged, demanded, exacted, 1,956
or proposed to be rendered, charged, demanded, or exacted, is, or 1,957
will be, unjust, unreasonable, unjustly discriminatory, unjustly 1,958
preferential, or in violation of law, that the service is, or 1,959
will be, inadequate, or that the maximum rates, charges, tolls, 1,960
or rentals chargeable by any such public utility are insufficient 1,961
to yield reasonable compensation for the service rendered, and 1,962
are unjust and unreasonable, the commission shall: 1,963
(1) With due regard among other things to the value of all 1,965
property of the public utility actually used and useful for the 1,966
convenience of the public as determined under division (A)(1) of 1,967
this section, excluding from such value the value of any 1,968
franchise or right to own, operate, or enjoy the same in excess 1,969
of the amount, exclusive of any tax or annual charge, actually 1,970
paid to any political subdivision of the state or county, as the 1,971
consideration for the grant of such franchise or right, and 1,972
excluding any value added to such property by reason of a 1,973
monopoly or merger, with due regard in determining the dollar 1,974
annual return under division (A)(3) of this section to the 1,975
necessity of making reservation out of the income for surplus, 1,976
47
depreciation, and contingencies, and; 1,977
(2) With due regard to all such other matters as are 1,979
proper, according to the facts in each case, 1,980
(a) Including a fair and reasonable rate of return 1,982
determined by the commission with reference to a cost of debt 1,983
equal to the actual embedded cost of debt of such public utility, 1,984
(b) But not including the portion of any periodic rental 1,986
or use payments representing that cost of property which THAT is 1,987
included in the valuation report under divisions (F) and (G) of 1,988
section 4909.05 of the Revised Code, fix and determine the just 1,989
and reasonable rate, fare, charge, toll, rental, or service to be 1,990
rendered, charged, demanded, exacted, or collected for the 1,991
performance or rendition of the service that will provide the 1,992
public utility the allowable gross annual revenues under division 1,993
(B) of this section, and order such just and reasonable rate, 1,994
fare, charge, toll, rental, or service to be substituted for the 1,995
existing one. After such determination and order no change in 1,996
the rate, fare, toll, charge, rental, schedule, classification, 1,997
or service shall be made, rendered, charged, demanded, exacted, 1,998
or changed by such public utility without the order of the 1,999
commission, and any other rate, fare, toll, charge, rental, 2,000
classification, or service is prohibited. 2,001
(E) Upon application of any person or any public utility, 2,003
and after notice to the parties in interest and opportunity to be 2,004
heard as provided in Chapters 4901., 4903., 4905., 4907., 4909., 2,005
4921., and 4923. of the Revised Code for other hearings, has been 2,006
given, the commission may rescind, alter, or amend an order 2,007
fixing any rate, fare, toll, charge, rental, classification, or 2,008
service, or any other order made by the commission. Certified 2,009
copies of such orders shall be served and take effect as provided 2,010
for original orders. 2,011
Sec. 4909.161. (A) Notwithstanding the provisions of 2,020
Chapters 4905. and 4909. of the Revised Code, the payment of any 2,022
type of increased excise tax levy shall be considered to be a 2,023
48
normal expense incurred by a public utility in the course of 2,024
rendering service to the public, and may be recovered as such in
accordance with an order of the public utilities commission. Any 2,025
public utility required to pay any such increased excise tax levy 2,026
may file with the public utilities commission revised rate 2,027
schedules which THAT will permit full recovery on an interim or 2,029
permanent basis in its rates, of the amount of any resultant 2,030
increased tax payments and the commission shall promptly act to
approve such schedules. 2,031
(B) NOTWITHSTANDING CHAPTERS 4905. AND 4909. OF THE 2,036
REVISED CODE, THE PAYMENT OF THE KILOWATT-HOUR TAX IMPOSED BY 2,039
SECTION 5727.81 OF THE REVISED CODE SHALL BE CONSIDERED A NORMAL 2,042
EXPENSE INCURRED BY AN ELECTRIC DISTRIBUTION UTILITY, AS DEFINED
IN SECTION 4928.01 OF THE REVISED CODE, IN THE COURSE OF 2,043
RENDERING SERVICE TO THE PUBLIC, AND MAY BE RECOVERED AS SUCH IN 2,044
ACCORDANCE WITH AN ORDER OF THE COMMISSION. AN ELECTRIC 2,045
DISTRIBUTION UTILITY REQUIRED TO PAY THE KILOWATT-HOUR TAX MAY 2,046
FILE WITH THE COMMISSION REVISED RATE SCHEDULES, CONSISTENT WITH 2,047
CHAPTERS 4905. AND 4909. AND DIVISION (A)(6) OF SECTION 4928.34 2,049
OF THE REVISED CODE, THAT WILL PERMIT FULL RECOVERY ON A 2,051
PERMANENT BASIS IN ITS RATES, OF THE AMOUNT OF ANY RESULTANT TAX 2,052
PAYMENTS, AFTER TAKING INTO ACCOUNT ANY REDUCTIONS OF TAXES IN 2,054
ITS RATES RESULTING FROM SUB. S.B. NO. 3 OF THE 123rd GENERAL 2,056
ASSEMBLY, AND THE COMMISSION SHALL ACT PROMPTLY TO APPROVE THOSE 2,058
SCHEDULES.
Sec. 4911.18. (A) For the sole purpose of maintaining and 2,067
administering the office of the consumers' counsel and exercising 2,068
the powers of the consumers' counsel under this chapter, an 2,069
amount equal to the appropriation to the office of the consumers' 2,070
counsel in each fiscal year shall be apportioned among and 2,071
assessed against the EACH public utilities UTILITY within the 2,073
state, as defined in section 4911.01 of the Revised Code, by 2,074
first computing an assessment as though it were to be made in 2,075
proportion to the intrastate gross earnings or receipts of the 2,076
49
public utilities companies UTILITY for the calendar year next 2,077
preceding that in which the assessments are ASSESSMENT IS made, 2,079
excluding earnings or receipts from sales to other public 2,081
utilities for resale. THE OFFICE MAY INCLUDE IN THAT FIRST 2,082
COMPUTATION ANY AMOUNT OF A RAILROAD'S OR PUBLIC UTILITY'S 2,083
INTRASTATE GROSS EARNINGS OR RECEIPTS UNDERREPORTED IN A PRIOR 2,084
YEAR. IN ADDITION TO WHATEVER PENALTIES APPLY UNDER THE REVISED 2,085
CODE TO SUCH UNDERREPORTING, THE OFFICE SHALL ASSESS THE RAILROAD 2,087
OR PUBLIC UTILITY INTEREST AT THE RATE STATED IN DIVISION (A) OF 2,088
SECTION 1343.01 OF THE REVISED CODE. THE OFFICE SHALL DEPOSIT 2,090
ANY INTEREST SO COLLECTED INTO THE CONSUMERS' COUNSEL OPERATING
FUND. 2,091
The final computation of the assessment shall consist of 2,093
imposing upon each company PUBLIC UTILITY whose assessment under 2,094
the first computation would have been fifty dollars or less an 2,096
assessment of fifty dollars and recomputing the assessment of the 2,097
remaining companies by apportioning an amount equal to the 2,098
appropriation to the office of consumers' counsel in each fiscal 2,099
year less the total amount to be recovered from those paying the 2,100
minimum assessment, in proportion to the intrastate gross 2,101
earnings or receipts of the remaining companies for the calendar 2,102
year next preceding that in which the assessments are made, 2,103
excluding earnings or receipts from sales to other public 2,104
utilities for resale. 2,105
IN THE CASE OF AN ASSESSMENT BASED ON INTRASTATE GROSS 2,107
RECEIPTS UNDER THIS SECTION AGAINST A PUBLIC UTILITY THAT IS AN 2,108
ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF THE REVISED 2,109
CODE, OR AN ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 2,110
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 2,111
4928.08 OF THE REVISED CODE, SUCH RECEIPTS SHALL BE THOSE 2,113
SPECIFIED IN THE UTILITY'S, COMPANY'S, COOPERATIVE'S, OR 2,114
AGGREGATOR'S MOST RECENT REPORT OF INTRASTATE GROSS RECEIPTS AND 2,115
SALES OF KILOWATT HOURS OF ELECTRICITY, FILED WITH THE PUBLIC 2,116
UTILITIES COMMISSION PURSUANT TO DIVISION (F) OF SECTION 4928.06 2,117
50
OF THE REVISED CODE, AND VERIFIED BY THE COMMISSION. 2,119
(B) On or before the first day of October in each year, 2,121
the OFFICE OF CONSUMERS' counsel shall notify each public utility 2,122
company of the sum assessed against it, whereupon payment shall 2,124
be made to the counsel, who shall deposit it into the state 2,125
treasury to the credit of the consumers' counsel operating fund, 2,127
which is hereby created. Any such amounts paid into the fund but 2,130
not expended by the counsel OFFICE shall be credited ratably by 2,132
the counsel OFFICE to the public utility companies which 2,134
UTILITIES THAT pay more than the minimum assessment, according to 2,136
the respective portions of such sum assessable against them for 2,137
the ensuing calendar year, after first deducting any deficits
accumulated from prior years. The assessments for such calendar 2,138
year shall be reduced correspondingly. 2,139
(C) Within five days after the beginning of each fiscal 2,141
year, the director of budget and management shall transfer from 2,142
the general revenue fund to the consumers' counsel operating fund 2,143
an amount sufficient for maintaining and administering the office 2,144
of the consumers' counsel and exercising the powers of the 2,145
consumers' counsel under this chapter during the first four 2,146
months of the fiscal year. Not later than the thirty-first day 2,147
of December of the fiscal year, the same amount shall be 2,149
transferred back to the general revenue fund from the consumers' 2,150
counsel operating fund.
(D) AS USED IN THIS SECTION, "PUBLIC UTILITY" INCLUDES, IN 2,152
ADDITION TO AN ELECTRIC UTILITY AS DEFINED IN SECTION 4928.01 OF 2,153
THE REVISED CODE, AN ELECTRIC SERVICES COMPANY, AN ELECTRIC 2,155
COOPERATIVE, OR A GOVERNMENTAL AGGREGATOR SUBJECT TO
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE 2,157
EXTENT OF THE COMPANY'S, COOPERATIVE'S, OR AGGREGATOR'S
ENGAGEMENT IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE 2,158
SUPPLY IN THIS STATE OF ANY RETAIL ELECTRIC SERVICE FOR WHICH IT 2,160
MUST BE SO CERTIFIED.
Sec. 4928.01. (A) AS USED IN THIS CHAPTER: 2,162
51
(1) "ANCILLARY SERVICE" MEANS ANY FUNCTION NECESSARY TO 2,164
THE PROVISION OF ELECTRIC TRANSMISSION OR DISTRIBUTION SERVICE TO 2,165
A RETAIL CUSTOMER AND INCLUDES, BUT IS NOT LIMITED TO, 2,166
SCHEDULING, SYSTEM CONTROL, AND DISPATCH SERVICES; REACTIVE 2,167
SUPPLY FROM GENERATION RESOURCES AND VOLTAGE CONTROL SERVICE; 2,168
REACTIVE SUPPLY FROM TRANSMISSION RESOURCES SERVICE; REGULATION 2,169
SERVICE; FREQUENCY RESPONSE SERVICE; ENERGY IMBALANCE SERVICE; 2,170
OPERATING RESERVE-SPINNING RESERVE SERVICE; OPERATING 2,171
RESERVE-SUPPLEMENTAL RESERVE SERVICE; LOAD FOLLOWING; BACK-UP 2,172
SUPPLY SERVICE; REAL-POWER LOSS REPLACEMENT SERVICE; DYNAMIC 2,173
SCHEDULING; SYSTEM BLACK START CAPABILITY; AND NETWORK STABILITY 2,174
SERVICE.
(2) "BILLING AND COLLECTION AGENT" MEANS A FULLY 2,176
INDEPENDENT AGENT, NOT AFFILIATED WITH OR OTHERWISE CONTROLLED BY 2,177
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,178
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,179
UNDER SECTION 4928.08 OF THE REVISED CODE, TO THE EXTENT THAT THE 2,180
AGENT IS UNDER CONTRACT WITH SUCH UTILITY, COMPANY, COOPERATIVE,
OR AGGREGATOR SOLELY TO PROVIDE BILLING AND COLLECTION FOR RETAIL 2,182
ELECTRIC SERVICE ON BEHALF OF THE UTILITY COMPANY, COOPERATIVE, 2,183
OR AGGREGATOR.
(3) "CERTIFIED TERRITORY" MEANS THE CERTIFIED TERRITORY 2,185
ESTABLISHED FOR AN ELECTRIC SUPPLIER UNDER SECTIONS 4933.81 TO 2,186
4933.90 OF THE REVISED CODE AS AMENDED BY SUB. S.B. NO. 3 OF THE 2,188
123rd GENERAL ASSEMBLY. 2,189
(4) "COMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,191
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS COMPETITIVE AS 2,192
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,193
(5) "ELECTRIC COOPERATIVE" MEANS A NOT-FOR-PROFIT ELECTRIC 2,195
LIGHT COMPANY THAT BOTH IS OR HAS BEEN FINANCED IN WHOLE OR IN 2,196
PART UNDER THE "RURAL ELECTRIFICATION ACT OF 1936," 49 STAT. 2,200
1363, 7 U.S.C. 901, AND OWNS OR OPERATES FACILITIES IN THIS STATE 2,202
TO GENERATE, TRANSMIT, OR DISTRIBUTE ELECTRICITY, OR A 2,203
NOT-FOR-PROFIT SUCCESSOR OF SUCH COMPANY.
52
(6) "ELECTRIC DISTRIBUTION UTILITY" MEANS AN ELECTRIC 2,205
UTILITY THAT SUPPLIES AT LEAST RETAIL ELECTRIC DISTRIBUTION 2,206
SERVICE.
(7) "ELECTRIC LIGHT COMPANY" HAS THE SAME MEANING AS IN 2,208
SECTION 4905.03 OF THE REVISED CODE AND INCLUDES AN ELECTRIC 2,209
SERVICES COMPANY, BUT EXCLUDES ANY SELF-GENERATOR TO THE EXTENT 2,211
IT CONSUMES ELECTRICITY IT SO PRODUCES OR TO THE EXTENT IT SELLS 2,212
FOR RESALE ELECTRICITY IT SO PRODUCES. 2,213
(8) "ELECTRIC LOAD CENTER" HAS THE SAME MEANING AS IN 2,215
SECTION 4933.81 OF THE REVISED CODE. 2,216
(9) "ELECTRIC SERVICES COMPANY" MEANS AN ELECTRIC LIGHT 2,218
COMPANY THAT IS ENGAGED ON A FOR-PROFIT OR NOT-FOR-PROFIT BASIS 2,219
IN THE BUSINESS OF SUPPLYING OR ARRANGING FOR THE SUPPLY OF ONLY 2,220
A COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,222
SERVICES COMPANY" INCLUDES A POWER MARKETER, POWER BROKER, 2,223
AGGREGATOR, OR INDEPENDENT POWER PRODUCER BUT EXCLUDES AN 2,224
ELECTRIC COOPERATIVE, MUNICIPAL ELECTRIC UTILITY, GOVERNMENTAL 2,226
AGGREGATOR, OR BILLING AND COLLECTION AGENT.
(10) "ELECTRIC SUPPLIER" HAS THE SAME MEANING AS IN 2,228
SECTION 4933.81 OF THE REVISED CODE. 2,229
(11) "ELECTRIC UTILITY" MEANS AN ELECTRIC LIGHT COMPANY 2,231
THAT IS ENGAGED ON A FOR-PROFIT BASIS IN THE BUSINESS OF 2,234
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE
OR IN THE BUSINESSES OF SUPPLYING BOTH A NONCOMPETITIVE AND A 2,236
COMPETITIVE RETAIL ELECTRIC SERVICE IN THIS STATE. "ELECTRIC 2,237
UTILITY" EXCLUDES A MUNICIPAL ELECTRIC UTILITY OR A BILLING AND 2,239
COLLECTION AGENT.
(12) "FIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE OTHER 2,242
THAN NONFIRM ELECTRIC SERVICE.
(13) "GOVERNMENTAL AGGREGATOR" MEANS A LEGISLATIVE 2,244
AUTHORITY OF A MUNICIPAL CORPORATION, A BOARD OF TOWNSHIP 2,245
TRUSTEES, OR A BOARD OF COUNTY COMMISSIONERS ACTING AS AN 2,246
AGGREGATOR FOR THE PROVISION OF A COMPETITIVE RETAIL ELECTRIC 2,247
SERVICE UNDER AUTHORITY CONFERRED UNDER SECTION 4928.20 OF THE 2,249
53
REVISED CODE.
(14) A PERSON ACTS "KNOWINGLY," REGARDLESS OF THE PERSON'S 2,251
PURPOSE, WHEN THE PERSON IS AWARE THAT THE PERSON'S CONDUCT WILL 2,252
PROBABLY CAUSE A CERTAIN RESULT OR WILL PROBABLY BE OF A CERTAIN 2,253
NATURE. A PERSON HAS KNOWLEDGE OF CIRCUMSTANCES WHEN THE PERSON 2,254
IS AWARE THAT SUCH CIRCUMSTANCES PROBABLY EXIST. 2,255
(15) "LEVEL OF FUNDING FOR LOW-INCOME CUSTOMER ENERGY 2,257
EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC UTILITY RATES" 2,258
MEANS THE LEVEL OF FUNDS SPECIFICALLY INCLUDED IN AN ELECTRIC 2,259
UTILITY'S RATES ON THE EFFECTIVE DATE OF THIS SECTION PURSUANT TO 2,260
AN ORDER OF THE PUBLIC UTILITIES COMMISSION ISSUED UNDER CHAPTER 2,261
4905. OR 4909. OF THE REVISED CODE AND IN EFFECT ON THE DAY 2,262
BEFORE THE EFFECTIVE DATE OF THIS SECTION, FOR THE PURPOSE OF 2,264
IMPROVING THE ENERGY EFFICIENCY OF HOUSING FOR THE UTILITY'S 2,265
LOW-INCOME CUSTOMERS. THE TERM EXCLUDES THE LEVEL OF ANY SUCH 2,266
FUNDS COMMITTED TO A SPECIFIC NONPROFIT ORGANIZATION OR 2,267
ORGANIZATIONS PURSUANT TO A STIPULATION OR CONTRACT. 2,268
(16) "LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS" MEANS THE 2,270
PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM AS PRESCRIBED IN RULES 2,271
4901:1-18-02(B) TO (G) AND 4901:1-18-04(B) OF THE OHIO 2,273
ADMINISTRATIVE CODE IN EFFECT ON THE EFFECTIVE DATE OF THIS 2,274
SECTION OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER SECTION 2,276
4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; THE HOME 2,277
ENERGY ASSISTANCE PROGRAM AS PRESCRIBED IN SECTION 5117.21 OF THE 2,278
REVISED CODE AND IN EXECUTIVE ORDER 97-1023-V OR, IF MODIFIED 2,279
PURSUANT TO AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, 2,280
THE PROGRAM AS MODIFIED; THE HOME WEATHERIZATION ASSISTANCE 2,282
PROGRAM AS PRESCRIBED IN DIVISION (A)(6) OF SECTION 122.011 AND 2,283
IN SECTION 122.02 OF THE REVISED CODE OR, IF MODIFIED PURSUANT TO 2,285
AUTHORITY UNDER SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM
AS MODIFIED; THE OHIO ENERGY CREDIT PROGRAM AS PRESCRIBED IN 2,286
SECTIONS 5117.01 TO 5117.05, 5117.07 TO 5117.12, AND 5117.99 OF 2,287
THE REVISED CODE OR, IF MODIFIED PURSUANT TO AUTHORITY UNDER 2,288
SECTION 4928.53 OF THE REVISED CODE, THE PROGRAM AS MODIFIED; AND 2,289
54
THE TARGETED ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM 2,290
ESTABLISHED UNDER SECTION 4928.55 OF THE REVISED CODE. 2,291
(17) "MARKET DEVELOPMENT PERIOD" FOR AN ELECTRIC UTILITY 2,293
MEANS THE PERIOD OF TIME BEGINNING ON THE STARTING DATE OF 2,294
COMPETITIVE RETAIL ELECTRIC SERVICE AND ENDING ON THE APPLICABLE 2,295
DATE FOR THAT UTILITY AS SPECIFIED IN SECTION 4928.40 OF THE 2,296
REVISED CODE, IRRESPECTIVE OF WHETHER THE UTILITY APPLIES TO 2,297
RECEIVE TRANSITION REVENUES UNDER THIS CHAPTER. 2,298
(18) "MARKET POWER" MEANS THE ABILITY TO IMPOSE ON 2,300
CUSTOMERS A SUSTAINED PRICE FOR A PRODUCT OR SERVICE ABOVE THE 2,301
PRICE THAT WOULD PREVAIL IN A COMPETITIVE MARKET. 2,302
(19) "MERCANTILE COMMERCIAL CUSTOMER" MEANS A COMMERCIAL 2,305
OR INDUSTRIAL CUSTOMER IF THE ELECTRICITY CONSUMED IS FOR 2,306
NONRESIDENTIAL USE AND THE CUSTOMER CONSUMES MORE THAN SEVEN 2,307
HUNDRED THOUSAND KILOWATT HOURS PER YEAR OR IS PART OF A NATIONAL 2,308
ACCOUNT INVOLVING MULTIPLE FACILITIES IN ONE OR MORE STATES. 2,309
(20) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 2,311
CORPORATION THAT OWNS OR OPERATES FACILITIES TO GENERATE, 2,312
TRANSMIT, OR DISTRIBUTE ELECTRICITY. 2,313
(21) "NONCOMPETITIVE RETAIL ELECTRIC SERVICE" MEANS A 2,315
COMPONENT OF RETAIL ELECTRIC SERVICE THAT IS NONCOMPETITIVE AS 2,316
PROVIDED UNDER DIVISION (B) OF THIS SECTION. 2,317
(22) "NONFIRM ELECTRIC SERVICE" MEANS ELECTRIC SERVICE 2,320
PROVIDED PURSUANT TO A SCHEDULE FILED UNDER SECTION 4905.30 OF 2,321
THE REVISED CODE OR PURSUANT TO AN ARRANGEMENT UNDER SECTION 2,322
4905.31 OF THE REVISED CODE, WHICH SCHEDULE OR ARRANGEMENT 2,324
INCLUDES CONDITIONS THAT MAY REQUIRE THE CUSTOMER TO CURTAIL OR 2,325
INTERRUPT ELECTRIC USAGE DURING NONEMERGENCY CIRCUMSTANCES UPON
NOTIFICATION BY AN ELECTRIC UTILITY. 2,326
(23) "PERCENTAGE OF INCOME PAYMENT PLAN ARREARS" MEANS 2,329
FUNDS ELIGIBLE FOR COLLECTION THROUGH THE PERCENTAGE OF INCOME 2,330
PAYMENT PLAN RIDER, BUT UNCOLLECTED AS OF JULY 1, 2000. 2,332
(24) "PERSON" HAS THE SAME MEANING AS IN SECTION 1.59 OF 2,334
THE REVISED CODE. 2,336
55
(25) "PROJECT" MEANS ANY REAL OR PERSONAL PROPERTY 2,338
CONNECTED WITH ALL OR PART OF AN INDUSTRIAL, DISTRIBUTION, 2,339
COMMERCIAL, OR RESEARCH FACILITY, NOT-FOR-PROFIT FACILITY, OR 2,340
RESIDENCE THAT IS TO BE ACQUIRED, CONSTRUCTED, RECONSTRUCTED, 2,341
ENLARGED, IMPROVED, FURNISHED, OR EQUIPPED, OR ANY COMBINATION OF 2,342
THOSE ACTIVITIES, WITH AID FURNISHED PURSUANT TO SECTIONS 4928.61 2,343
TO 4928.63 OF THE REVISED CODE FOR THE PURPOSES OF 2,345
NOT-FOR-PROFIT, INDUSTRIAL, COMMERCIAL, DISTRIBUTION,
RESIDENTIAL, AND RESEARCH DEVELOPMENT IN THIS STATE. "PROJECT" 2,347
INCLUDES, BUT IS NOT LIMITED TO, ANY SMALL-SCALE RENEWABLES 2,348
PROJECT.
(26) "REGULATORY ASSETS" MEANS THE UNAMORTIZED NET 2,351
REGULATORY ASSETS THAT ARE CAPITALIZED OR DEFERRED ON THE 2,352
REGULATORY BOOKS OF THE ELECTRIC UTILITY, PURSUANT TO AN ORDER OR 2,353
PRACTICE OF THE PUBLIC UTILITIES COMMISSION OR PURSUANT TO 2,354
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AS A RESULT OF A PRIOR
COMMISSION RATE-MAKING DECISION, AND THAT WOULD OTHERWISE HAVE 2,355
BEEN CHARGED TO EXPENSE AS INCURRED OR WOULD NOT HAVE BEEN 2,356
CAPITALIZED OR OTHERWISE DEFERRED FOR FUTURE REGULATORY 2,357
CONSIDERATION ABSENT COMMISSION ACTION. "REGULATORY ASSETS" 2,358
INCLUDES, BUT IS NOT LIMITED TO, ALL DEFERRED DEMAND-SIDE 2,359
MANAGEMENT COSTS; ALL DEFERRED PERCENTAGE OF INCOME PAYMENT PLAN 2,360
ARREARS; POST-IN-SERVICE CAPITALIZED CHARGES AND ASSETS 2,361
RECOGNIZED IN CONNECTION WITH STATEMENT OF FINANCIAL ACCOUNTING 2,362
STANDARDS NO. 109 (RECEIVABLES FROM CUSTOMERS FOR INCOME TAXES); 2,363
FUTURE NUCLEAR DECOMMISSIONING COSTS AND FUEL DISPOSAL COSTS AS 2,364
THOSE COSTS HAVE BEEN DETERMINED BY THE COMMISSION IN THE 2,365
ELECTRIC UTILITY'S MOST RECENT RATE OR ACCOUNTING APPLICATION 2,366
PROCEEDING ADDRESSING SUCH COSTS; THE UNDERPRECIATED COSTS OF 2,367
SAFETY AND RADIATION CONTROL EQUIPMENT ON NUCLEAR GENERATING 2,368
PLANTS OWNED OR LEASED BY AN ELECTRIC UTILITY; AND FUEL COSTS 2,369
CURRENTLY DEFERRED PURSUANT TO THE TERMS OF ONE OR MORE 2,370
SETTLEMENT AGREEMENTS APPROVED BY THE COMMISSION. 2,371
(27) "RETAIL ELECTRIC SERVICE" MEANS ANY SERVICE INVOLVED 2,373
56
IN SUPPLYING OR ARRANGING FOR THE SUPPLY OF ELECTRICITY TO 2,374
ULTIMATE CONSUMERS IN THIS STATE, FROM THE POINT OF GENERATION TO 2,375
THE POINT OF CONSUMPTION. FOR THE PURPOSES OF THIS CHAPTER, 2,376
RETAIL ELECTRIC SERVICE INCLUDES ONE OR MORE OF THE FOLLOWING 2,377
"SERVICE COMPONENTS": GENERATION SERVICE, AGGREGATION SERVICE, 2,378
POWER MARKETING SERVICE, POWER BROKERAGE SERVICE, TRANSMISSION 2,379
SERVICE, DISTRIBUTION SERVICE, ANCILLARY SERVICE, METERING 2,380
SERVICE, AND BILLING AND COLLECTION SERVICE. 2,381
(28) "SMALL ELECTRIC GENERATION FACILITY" MEANS AN 2,384
ELECTRIC GENERATION PLANT AND ASSOCIATED FACILITIES DESIGNED FOR, 2,385
OR CAPABLE OF, OPERATION AT A CAPACITY OF LESS THAN TWO 2,386
MEGAWATTS.
(29) "STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,388
SERVICE" MEANS JANUARY 1, 2001, EXCEPT AS PROVIDED IN DIVISION 2,389
(C) OF THIS SECTION. 2,390
(30) "CUSTOMER-GENERATOR" MEANS A USER OF A NET METERING 2,392
SYSTEM.
(31) "NET METERING" MEANS MEASURING THE DIFFERENCE IN AN 2,394
APPLICABLE BILLING PERIOD BETWEEN THE ELECTRICITY SUPPLIED BY AN 2,395
ELECTRIC SERVICE PROVIDER AND THE ELECTRICITY GENERATED BY A 2,396
CUSTOMER-GENERATOR WHICH IS FED BACK TO THE ELECTRIC SERVICE 2,397
PROVIDER.
(32) "NET METERING SYSTEM" MEANS A FACILITY FOR THE 2,399
PRODUCTION OF ELECTRICAL ENERGY THAT DOES ALL OF THE FOLLOWING: 2,400
(a) USES AS ITS FUEL EITHER SOLAR, WIND, BIOMASS, LANDFILL 2,402
GAS, OR HYDROPOWER, OR USES A MICROTURBINE OR A FUEL CELL; 2,404
(b) IS LOCATED ON A CUSTOMER-GENERATOR'S PREMISES; 2,406
(c) OPERATES IN PARALLEL WITH THE ELECTRIC UTILITY'S 2,408
TRANSMISSION AND DISTRIBUTION FACILITIES; 2,409
(d) IS INTENDED PRIMARILY TO OFFSET PART OR ALL OF THE 2,411
CUSTOMER-GENERATOR'S REQUIREMENTS FOR ELECTRICITY. 2,412
(33) "SELF-GENERATOR" MEANS AN ENTITY IN THIS STATE THAT 2,414
OWNS AN ELECTRIC GENERATION FACILITY THAT PRODUCES ELECTRICITY 2,415
PRIMARILY FOR THE OWNER'S CONSUMPTION AND THAT MAY PROVIDE ANY 2,416
57
SUCH EXCESS ELECTRICITY TO RETAIL ELECTRIC SERVICE PROVIDERS, 2,417
WHETHER THE FACILITY IS INSTALLED OR OPERATED BY THE OWNER OR BY 2,418
AN AGENT UNDER A CONTRACT.
(B) FOR THE PURPOSES OF THIS CHAPTER, A RETAIL ELECTRIC 2,419
SERVICE COMPONENT SHALL BE DEEMED A COMPETITIVE RETAIL ELECTRIC 2,420
SERVICE IF THE SERVICE COMPONENT IS COMPETITIVE PURSUANT TO A 2,422
DECLARATION BY A PROVISION OF THE REVISED CODE OR PURSUANT TO AN 2,423
ORDER OF THE PUBLIC UTILITIES COMMISSION AUTHORIZED UNDER
DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE. OTHERWISE, 2,426
THE SERVICE COMPONENT SHALL BE DEEMED A NONCOMPETITIVE RETAIL 2,427
ELECTRIC SERVICE.
(C) PRIOR TO JANUARY 1, 2001, AND AFTER APPLICATION BY AN 2,430
ELECTRIC UTILITY, NOTICE, AND AN OPPORTUNITY TO BE HEARD, THE
PUBLIC UTILITIES COMMISSION MAY ISSUE AN ORDER DELAYING THE 2,433
JANUARY 1, 2001, STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,434
SERVICE FOR THE ELECTRIC UTILITY FOR A SPECIFIED NUMBER OF DAYS 2,435
NOT TO EXCEED SIX MONTHS, BUT ONLY FOR EXTREME TECHNICAL 2,436
CONDITIONS PRECLUDING THE START OF COMPETITIVE RETAIL ELECTRIC 2,437
SERVICE ON JANUARY 1, 2001. 2,438
Sec. 4928.02. IT IS THE POLICY OF THIS STATE TO DO THE 2,440
FOLLOWING THROUGHOUT THIS STATE BEGINNING ON THE STARTING DATE OF 2,441
COMPETITIVE RETAIL ELECTRIC SERVICE: 2,442
(A) ENSURE THE AVAILABILITY TO CONSUMERS OF ADEQUATE, 2,444
RELIABLE, SAFE, EFFICIENT, NONDISCRIMINATORY, AND REASONABLY 2,445
PRICED RETAIL ELECTRIC SERVICE; 2,446
(B) ENSURE THE AVAILABILITY OF UNBUNDLED AND COMPARABLE 2,448
RETAIL ELECTRIC SERVICE THAT PROVIDES CONSUMERS WITH THE 2,449
SUPPLIER, PRICE, TERMS, CONDITIONS, AND QUALITY OPTIONS THEY 2,451
ELECT TO MEET THEIR RESPECTIVE NEEDS;
(C) ENSURE DIVERSITY OF ELECTRICITY SUPPLIES AND 2,453
SUPPLIERS, BY GIVING CONSUMERS EFFECTIVE CHOICES OVER THE 2,454
SELECTION OF THOSE SUPPLIES AND SUPPLIERS AND BY ENCOURAGING THE 2,455
DEVELOPMENT OF DISTRIBUTED AND SMALL GENERATION FACILITIES; 2,456
(D) ENCOURAGE INNOVATION AND MARKET ACCESS FOR 2,458
58
COST-EFFECTIVE SUPPLY- AND DEMAND-SIDE RETAIL ELECTRIC SERVICE; 2,459
(E) ENCOURAGE COST-EFFECTIVE AND EFFICIENT ACCESS TO 2,461
INFORMATION REGARDING THE OPERATION OF THE TRANSMISSION AND 2,462
DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES IN ORDER TO PROMOTE 2,464
EFFECTIVE CUSTOMER CHOICE OF RETAIL ELECTRIC SERVICE;
(F) RECOGNIZE THE CONTINUING EMERGENCE OF COMPETITIVE 2,466
ELECTRICITY MARKETS THROUGH THE DEVELOPMENT AND IMPLEMENTATION OF 2,467
FLEXIBLE REGULATORY TREATMENT; 2,468
(G) ENSURE EFFECTIVE COMPETITION IN THE PROVISION OF 2,470
RETAIL ELECTRIC SERVICE BY AVOIDING ANTICOMPETITIVE SUBSIDIES 2,471
FLOWING FROM A NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO A 2,473
COMPETITIVE RETAIL ELECTRIC SERVICE OR TO A PRODUCT OR SERVICE 2,474
OTHER THAN RETAIL ELECTRIC SERVICE, AND VICE VERSA;
(H) ENSURE RETAIL ELECTRIC SERVICE CONSUMERS PROTECTION 2,476
AGAINST UNREASONABLE SALES PRACTICES, MARKET DEFICIENCIES, AND 2,477
MARKET POWER; 2,478
(I) FACILITATE THE STATE'S EFFECTIVENESS IN THE GLOBAL 2,480
ECONOMY. 2,481
Sec. 4928.03. BEGINNING ON THE STARTING DATE OF 2,483
COMPETITIVE RETAIL ELECTRIC SERVICE, RETAIL ELECTRIC GENERATION, 2,484
AGGREGATION, POWER MARKETING, AND POWER BROKERAGE SERVICES 2,485
SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED TERRITORY OF AN 2,486
ELECTRIC UTILITY ARE COMPETITIVE RETAIL ELECTRIC SERVICES THAT 2,487
THE CONSUMERS MAY OBTAIN SUBJECT TO THIS CHAPTER FROM ANY 2,488
SUPPLIER OR SUPPLIERS. IN ACCORDANCE WITH A FILING UNDER 2,489
DIVISION (F) OF SECTION 4933.81 OF THE REVISED CODE, RETAIL 2,490
ELECTRIC GENERATION, AGGREGATION, POWER MARKETING, OR POWER 2,491
BROKERAGE SERVICES SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,492
TERRITORY OF AN ELECTRIC COOPERATIVE THAT HAS MADE THE FILING ARE 2,493
COMPETITIVE RETAIL ELECTRIC SERVICES THAT THE CONSUMERS MAY 2,495
OBTAIN SUBJECT TO THIS CHAPTER FROM ANY SUPPLIER OR SUPPLIERS. 2,496
BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 2,498
ELECTRIC SERVICE AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 2,499
EACH CONSUMER IN THIS STATE AND THE SUPPLIERS TO A CONSUMER SHALL 2,500
59
HAVE COMPARABLE AND NONDISCRIMINATORY ACCESS TO NONCOMPETITIVE 2,501
RETAIL ELECTRIC SERVICES OF AN ELECTRIC UTILITY IN THIS STATE 2,502
WITHIN ITS CERTIFIED TERRITORY FOR THE PURPOSE OF SATISFYING THE 2,504
CONSUMER'S ELECTRICITY REQUIREMENTS IN KEEPING WITH THE POLICY 2,505
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE. 2,507
Sec. 4928.04. (A) THE PUBLIC UTILITIES COMMISSION BY 2,509
ORDER MAY DECLARE THAT RETAIL ANCILLARY, METERING, OR BILLING AND 2,510
COLLECTION SERVICE SUPPLIED TO CONSUMERS WITHIN THE CERTIFIED 2,512
TERRITORY OF AN ELECTRIC UTILITY ON OR AFTER THE STARTING DATE OF 2,513
COMPETITIVE RETAIL ELECTRIC SERVICE IS A COMPETITIVE RETAIL 2,514
ELECTRIC SERVICE THAT THE CONSUMERS MAY OBTAIN FROM ANY SUPPLIER 2,515
OR SUPPLIERS SUBJECT TO THIS CHAPTER. THE COMMISSION MAY ISSUE 2,516
SUCH ORDER, AFTER INVESTIGATION AND PUBLIC HEARING, ONLY IF IT 2,517
FIRST DETERMINES EITHER OF THE FOLLOWING: 2,518
(1) THERE WILL BE EFFECTIVE COMPETITION WITH RESPECT TO 2,520
THE SERVICE. 2,521
(2) THE CUSTOMERS OF THE SERVICE HAVE REASONABLY AVAILABLE 2,523
ALTERNATIVES. 2,524
THE COMMISSION SHALL INITIATE A PROCEEDING ON OR BEFORE 2,526
MARCH 31, 2003, ON THE QUESTION OF THE DESIRABILITY, FEASIBILITY, 2,527
AND TIMING OF ANY SUCH COMPETITION. 2,528
(B) IN CARRYING OUT DIVISION (A) OF THIS SECTION, THE 2,530
COMMISSION MAY PRESCRIBE DIFFERENT CLASSIFICATIONS, PROCEDURES, 2,531
TERMS, OR CONDITIONS FOR DIFFERENT ELECTRIC UTILITIES AND FOR THE
RETAIL ELECTRIC SERVICES THEY PROVIDE THAT ARE DECLARED 2,532
COMPETITIVE PURSUANT TO THAT DIVISION, PROVIDED THE 2,533
CLASSIFICATIONS, PROCEDURES, TERMS, OR CONDITIONS ARE REASONABLE 2,534
AND DO NOT CONFER ANY UNDUE ECONOMIC, COMPETITIVE, OR MARKET 2,535
ADVANTAGE OR PREFERENCE UPON ANY ELECTRIC UTILITY. 2,536
Sec. 4928.05. (A)(1) ON AND AFTER THE STARTING DATE OF 2,538
COMPETITIVE RETAIL ELECTRIC SERVICE, A COMPETITIVE RETAIL 2,540
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC UTILITY OR ELECTRIC 2,541
SERVICES COMPANY SHALL NOT BE SUBJECT TO SUPERVISION AND 2,542
REGULATION BY A MUNICIPAL CORPORATION UNDER CHAPTER 743. OF THE 2,543
60
REVISED CODE OR BY THE PUBLIC UTILITIES COMMISSION UNDER CHAPTERS 2,545
4901. TO 4909., 4933., 4935., AND 4963. OF THE REVISED CODE, 2,546
EXCEPT SECTION 4905.10, DIVISION (B) OF 4905.33, AND SECTIONS 2,547
4905.35 AND 4933.81 TO 4933.90; EXCEPT SECTIONS 4905.06, 4935.03, 2,548
4963.40, AND 4963.41 OF THE REVISED CODE ONLY TO THE EXTENT 2,550
RELATED TO SERVICE RELIABILITY AND PUBLIC SAFETY; AND EXCEPT AS 2,552
OTHERWISE PROVIDED IN THIS CHAPTER. THE COMMISSION'S AUTHORITY 2,553
TO ENFORCE THOSE EXCEPTED PROVISIONS WITH RESPECT TO A 2,554
COMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE SUCH AUTHORITY AS IS 2,555
PROVIDED FOR THEIR ENFORCEMENT UNDER CHAPTERS 4901. TO 4909.,
4933., 4935., AND 4963. OF THE REVISED CODE AND THIS CHAPTER. 2,556
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,558
ELECTRIC SERVICE, A COMPETITIVE RETAIL ELECTRIC SERVICE SUPPLIED 2,559
BY AN ELECTRIC COOPERATIVE SHALL NOT BE SUBJECT TO SUPERVISION 2,560
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,561
4933., 4935., AND 4963. OF THE REVISED CODE, EXCEPT AS OTHERWISE 2,562
EXPRESSLY PROVIDED IN SECTIONS 4928.01 TO 4928.10 AND 4928.16 OF 2,563
THE REVISED CODE.
(2) ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,565
ELECTRIC SERVICE, A NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,566
SUPPLIED BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SUPERVISION 2,567
AND REGULATION BY THE COMMISSION UNDER CHAPTERS 4901. TO 4909., 2,568
4933., 4935., AND 4963. OF THE REVISED CODE AND THIS CHAPTER, TO 2,569
THE EXTENT THAT AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE 2,571
COMMISSION'S AUTHORITY TO ENFORCE THOSE PROVISIONS WITH RESPECT 2,572
TO A NONCOMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE THE 2,573
AUTHORITY PROVIDED UNDER THOSE CHAPTERS AND THIS CHAPTER, TO THE 2,574
EXTENT THE AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. 2,575
THE COMMISSION SHALL EXERCISE ITS JURISDICTION WITH RESPECT 2,577
TO THE DELIVERY OF ELECTRICITY BY AN ELECTRIC UTILITY IN THIS 2,578
STATE ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 2,579
ELECTRIC SERVICE SO AS TO ENSURE THAT NO ASPECT OF THE DELIVERY 2,580
OF ELECTRICITY BY THE UTILITY TO CONSUMERS IN THIS STATE THAT 2,581
CONSISTS OF A NONCOMPETITIVE RETAIL ELECTRIC SERVICE IS 2,582
61
UNREGULATED.
ON AND AFTER THAT STARTING DATE, A NONCOMPETITIVE RETAIL 2,584
ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC COOPERATIVE SHALL NOT BE 2,586
SUBJECT TO SUPERVISION AND REGULATION BY THE COMMISSION UNDER 2,587
CHAPTERS 4901. TO 4909., 4933., 4935., AND 4963. OF THE REVISED 2,588
CODE, EXCEPT SECTIONS 4933.81 TO 4933.90 AND 4935.03 OF THE
REVISED CODE. THE COMMISSION'S AUTHORITY TO ENFORCE THOSE 2,589
EXCEPTED SECTIONS WITH RESPECT TO A NONCOMPETITIVE RETAIL 2,590
ELECTRIC SERVICE OF AN ELECTRIC COOPERATIVE SHALL BE SUCH
AUTHORITY AS IS PROVIDED FOR THEIR ENFORCEMENT UNDER CHAPTERS 2,591
4933. AND 4935. OF THE REVISED CODE. 2,592
(B) NOTHING IN THIS CHAPTER AFFECTS THE AUTHORITY OF THE 2,594
COMMISSION UNDER TITLE XLIX OF THE REVISED CODE TO REGULATE AN 2,595
ELECTRIC LIGHT COMPANY IN THIS STATE OR AN ELECTRIC SERVICE 2,596
SUPPLIED IN THIS STATE PRIOR TO THE STARTING DATE OF COMPETITIVE 2,597
RETAIL ELECTRIC SERVICE. 2,598
Sec. 4928.06. (A) BEGINNING ON THE STARTING DATE OF 2,600
COMPETITIVE RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES 2,601
COMMISSION SHALL ENSURE THAT THE POLICY SPECIFIED IN SECTION 2,603
4928.02 OF THE REVISED CODE IS EFFECTUATED. TO THE EXTENT 2,605
NECESSARY, THE COMMISSION SHALL ADOPT RULES TO CARRY OUT THIS 2,606
CHAPTER. INITIAL RULES NECESSARY FOR THE COMMENCEMENT OF THE 2,607
COMPETITIVE RETAIL ELECTRIC SERVICE UNDER THIS CHAPTER SHALL BE 2,608
ADOPTED WITHIN ONE HUNDRED EIGHTY DAYS AFTER THE EFFECTIVE DATE 2,609
OF THIS SECTION. EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, 2,610
THE PROCEEDINGS AND ORDERS OF THE COMMISSION UNDER THE CHAPTER 2,611
SHALL BE SUBJECT TO AND GOVERNED BY CHAPTER 4903. OF THE REVISED 2,612
CODE. 2,613
(B) IF THE COMMISSION DETERMINES, ON OR AFTER THE STARTING 2,616
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, THAT THERE IS A 2,617
DECLINE OR LOSS OF EFFECTIVE COMPETITION WITH RESPECT TO A 2,618
COMPETITIVE RETAIL ELECTRIC SERVICE OF AN ELECTRIC UTILITY, WHICH 2,619
SERVICE WAS DECLARED COMPETITIVE BY COMMISSION ORDER ISSUED 2,621
PURSUANT TO DIVISION (A) OF SECTION 4928.04 OF THE REVISED CODE, 2,622
62
THE COMMISSION SHALL ENSURE THAT THAT SERVICE IS PROVIDED AT 2,623
COMPENSATORY, FAIR, AND NONDISCRIMINATORY PRICES AND TERMS AND 2,624
CONDITIONS.
(C) IN ADDITION TO ITS AUTHORITY UNDER SECTION 4928.04 OF 2,626
THE REVISED CODE AND DIVISIONS (A) AND (B) OF THIS SECTION, THE 2,628
COMMISSION, ON AN ONGOING BASIS, SHALL MONITOR AND EVALUATE THE 2,629
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE FOR THE 2,630
PURPOSE OF DISCERNING ANY NONCOMPETITIVE RETAIL ELECTRIC SERVICE 2,631
THAT SHOULD BE AVAILABLE ON A COMPETITIVE BASIS ON OR AFTER THE 2,632
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE PURSUANT TO 2,633
A DECLARATION IN THE REVISED CODE, AND FOR THE PURPOSE OF 2,634
DISCERNING ANY COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS NO 2,636
LONGER SUBJECT TO EFFECTIVE COMPETITION ON OR AFTER THAT DATE. 2,637
UPON SUCH EVALUATION, THE COMMISSION PERIODICALLY SHALL REPORT 2,638
ITS FINDINGS AND ANY RECOMMENDATIONS FOR LEGISLATION TO THE 2,639
STANDING COMMITTEES OF BOTH HOUSES OF THE GENERAL ASSEMBLY THAT 2,640
HAVE PRIMARY JURISDICTION REGARDING PUBLIC UTILITY LEGISLATION. 2,641
UNTIL 2008, THE COMMISSION AND THE CONSUMER'S COUNSEL ALSO SHALL 2,642
PROVIDE BIENNIAL REPORTS TO THOSE STANDING COMMITTEES, REGARDING 2,643
THE EFFECTIVENESS OF COMPETITION IN THE SUPPLY OF COMPETITIVE 2,644
RETAIL ELECTRIC SERVICES IN THIS STATE. IN ADDITION, UNTIL THE 2,646
END OF ALL MARKET DEVELOPMENT PERIODS AS DETERMINED BY THE 2,647
COMMISSION UNDER SECTION 4928.40 OF THE REVISED CODE, THOSE
STANDING COMMITTEES SHALL MEET AT LEAST BIENNIALLY TO CONSIDER 2,648
THE EFFECT ON THIS STATE OF ELECTRIC SERVICE RESTRUCTURING AND TO 2,649
RECEIVE REPORTS FROM THE COMMISSION, CONSUMERS' COUNSEL, AND 2,650
DIRECTOR OF DEVELOPMENT. 2,651
(D) IN DETERMINING, FOR PURPOSES OF DIVISION (B) OR (C) OF 2,654
THIS SECTION, WHETHER THERE IS EFFECTIVE COMPETITION IN THE 2,655
PROVISION OF A RETAIL ELECTRIC SERVICE OR REASONABLY AVAILABLE 2,657
ALTERNATIVES FOR THAT SERVICE, THE COMMISSION SHALL CONSIDER 2,658
FACTORS INCLUDING, BUT NOT LIMITED TO, ALL OF THE FOLLOWING: 2,659
(1) THE NUMBER AND SIZE OF ALTERNATIVE PROVIDERS OF THAT 2,661
SERVICE;
63
(2) THE EXTENT TO WHICH THE SERVICE IS AVAILABLE FROM 2,663
ALTERNATIVE SUPPLIERS IN THE RELEVANT MARKET; 2,664
(3) THE ABILITY OF ALTERNATIVE SUPPLIERS TO MAKE 2,666
FUNCTIONALLY EQUIVALENT OR SUBSTITUTE SERVICES READILY AVAILABLE 2,667
AT COMPETITIVE PRICES, TERMS, AND CONDITIONS; 2,668
(4) OTHER INDICATORS OF MARKET POWER, WHICH MAY INCLUDE 2,670
MARKET SHARE, GROWTH IN MARKET SHARE, EASE OF ENTRY, AND THE 2,671
AFFILIATION OF SUPPLIERS OF SERVICES. 2,672
THE BURDEN OF PROOF SHALL BE ON ANY ENTITY REQUESTING, 2,674
UNDER DIVISION (B) OR (C) OF THIS SECTION, A DETERMINATION BY THE 2,675
COMMISSION OF THE EXISTENCE OF OR A LACK OF EFFECTIVE COMPETITION 2,676
OR REASONABLY AVAILABLE ALTERNATIVES. 2,677
(E)(1) BEGINNING ON THE STARTING DATE OF COMPETITIVE 2,679
RETAIL ELECTRIC SERVICE, THE COMMISSION HAS AUTHORITY UNDER 2,680
CHAPTERS 4901. TO 4909. OF THE REVISED CODE, AND SHALL EXERCISE 2,681
THAT AUTHORITY, TO RESOLVE ABUSES OF MARKET POWER BY ANY ELECTRIC 2,682
UTILITY THAT INTERFERE WITH EFFECTIVE COMPETITION IN THE 2,683
PROVISION OF RETAIL ELECTRIC SERVICE. 2,684
(2) IN ADDITION TO THE COMMISSION'S AUTHORITY UNDER 2,686
DIVISION (E)(1) OF THIS SECTION, THE COMMISSION, BEGINNING THE 2,688
FIRST YEAR AFTER THE MARKET DEVELOPMENT PERIOD OF A PARTICULAR 2,689
ELECTRIC UTILITY AND AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 2,690
HEARING, MAY TAKE SUCH MEASURES WITHIN A TRANSMISSION CONSTRAINED 2,691
AREA IN THE UTILITY'S CERTIFIED TERRITORY AS ARE NECESSARY TO 2,692
ENSURE THAT RETAIL ELECTRIC GENERATION SERVICE IS PROVIDED AT 2,693
REASONABLE RATES WITHIN THAT AREA. THE COMMISSION MAY EXERCISE 2,694
THIS AUTHORITY ONLY UPON FINDINGS THAT AN ELECTRIC UTILITY IS OR 2,695
HAS ENGAGED IN THE ABUSE OF MARKET POWER AND THAT THAT ABUSE IS 2,696
NOT ADEQUATELY MITIGATED BY RULES AND PRACTICES OF ANY 2,697
INDEPENDENT TRANSMISSION ENTITY CONTROLLING THE TRANSMISSION 2,698
FACILITIES. ANY SUCH MEASURE SHALL BE TAKEN ONLY TO THE EXTENT 2,699
NECESSARY TO PROTECT CUSTOMERS IN THE AREA FROM THE PARTICULAR 2,700
ABUSE OF MARKET POWER AND TO THE EXTENT THE COMMISSION'S 2,701
AUTHORITY IS NOT PREEMPTED BY FEDERAL LAW. THE MEASURE SHALL 2,702
64
REMAIN IN EFFECT UNTIL THE COMMISSION, AFTER REASONABLE NOTICE 2,703
AND OPPORTUNITY FOR HEARING, DETERMINES THAT THE PARTICULAR ABUSE 2,704
OF MARKET POWER HAS BEEN MITIGATED.
(F) AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,706
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,707
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE SHALL 2,708
PROVIDE THE COMMISSION WITH SUCH INFORMATION, REGARDING A 2,709
COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO 2,710
CERTIFICATION, AS THE COMMISSION CONSIDERS NECESSARY TO CARRY OUT 2,712
THIS CHAPTER. AN ELECTRIC UTILITY SHALL PROVIDE THE COMMISSION 2,713
WITH SUCH INFORMATION AS THE COMMISSION CONSIDERS NECESSARY TO 2,714
CARRY OUT DIVISIONS (B) TO (E) OF THIS SECTION. THE COMMISSION 2,715
SHALL TAKE SUCH MEASURES AS IT CONSIDERS NECESSARY TO PROTECT THE 2,716
CONFIDENTIALITY OF ANY SUCH INFORMATION. 2,717
THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO FILE 2,720
WITH THE COMMISSION ON AND AFTER THE STARTING DATE OF COMPETITIVE 2,721
RETAIL ELECTRIC SERVICE AN ANNUAL REPORT OF ITS INTRASTATE GROSS 2,722
RECEIPTS AND SALES OF KILOWATT HOURS OF ELECTRICITY, AND SHALL 2,723
REQUIRE EACH ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, AND 2,724
GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION TO FILE AN 2,726
ANNUAL REPORT ON AND AFTER THAT STARTING DATE OF SUCH RECEIPTS 2,727
AND SALES FROM THE PROVISION OF THOSE RETAIL ELECTRIC SERVICES 2,728
FOR WHICH IT IS SUBJECT TO CERTIFICATION. FOR THE PURPOSE OF THE 2,729
REPORTS, SALES OF KILOWATT HOURS OF ELECTRICITY ARE DEEMED TO 2,730
OCCUR AT THE METER OF THE RETAIL CUSTOMER. 2,731
Sec. 4928.07. TO THE MAXIMUM EXTENT PRACTICABLE ON OR 2,733
AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, 2,734
AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,735
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,736
UNDER SECTION 4928.08 OF THE REVISED CODE SHALL SEPARATELY PRICE 2,738
COMPETITIVE RETAIL ELECTRIC SERVICES, AND THE PRICES SHALL BE 2,739
ITEMIZED ON THE BILL OF A CUSTOMER OR OTHERWISE DISCLOSED TO THE 2,740
CUSTOMER. ALTHOUGH A COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,741
BE SUPPLIED TO ANY CONSUMER ON SUCH A BASIS, SUCH AN ELECTRIC 2,742
65
UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR 2,743
GOVERNMENTAL AGGREGATOR MAY REPACKAGE THE SERVICE ON OR AFTER THE 2,744
STARTING DATE AND OFFER IT ON A BUNDLED BASIS WITH OTHER RETAIL 2,745
ELECTRIC SERVICES TO MEET CONSUMER PREFERENCES. SUCH REPACKAGING 2,746
BY AN ELECTRIC UTILITY SHALL BE SUBJECT TO SECTIONS 4905.33 TO 2,747
4905.35 OF THE REVISED CODE. REPACKAGING BY SUCH AN ELECTRIC 2,749
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL
AGGREGATOR SHALL BE SUBJECT TO THE LIMITATION THAT NO SUCH 2,750
ENTITY, AS TO A COMPETITIVE RETAIL ELECTRIC SERVICE FOR WHICH THE 2,751
COMPANY, COOPERATIVE, OR AGGREGATOR IS SUBJECT TO CERTIFICATION, 2,752
SHALL FURNISH FREE SERVICE OR SERVICE FOR LESS THAN ACTUAL COST 2,753
FOR THE PURPOSE OF DESTROYING COMPETITION. 2,754
Sec. 4928.08. (A) THIS SECTION APPLIES TO AN ELECTRIC 2,756
COOPERATIVE, OR TO A GOVERNMENTAL AGGREGATOR THAT IS A MUNICIPAL 2,757
ELECTRIC UTILITY, ONLY TO THE EXTENT OF A COMPETITIVE RETAIL 2,759
ELECTRIC SERVICE IT PROVIDES TO A CUSTOMER TO WHOM IT DOES NOT 2,760
PROVIDE A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 2,761
TRANSMISSION OR DISTRIBUTION FACILITIES IT SINGLY OR JOINTLY OWNS 2,762
OR OPERATES.
(B) NO ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,764
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SHALL PROVIDE A 2,765
COMPETITIVE RETAIL ELECTRIC SERVICE TO A CONSUMER IN THIS STATE 2,766
ON AND AFTER THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC 2,767
SERVICE WITHOUT FIRST BEING CERTIFIED BY THE PUBLIC UTILITIES 2,768
COMMISSION REGARDING ITS MANAGERIAL, TECHNICAL, AND FINANCIAL 2,769
CAPABILITY TO PROVIDE THAT SERVICE AND PROVIDING A FINANCIAL 2,770
GUARANTEE SUFFICIENT TO PROTECT CUSTOMERS AND ELECTRIC 2,771
DISTRIBUTION UTILITIES FROM DEFAULT. CERTIFICATION SHALL BE 2,772
GRANTED PURSUANT TO PROCEDURES AND STANDARDS THE COMMISSION SHALL 2,773
PRESCRIBE IN ACCORDANCE WITH DIVISION (C) OF THIS SECTION, EXCEPT 2,774
THAT CERTIFICATION OR CERTIFICATION RENEWAL SHALL BE DEEMED 2,775
APPROVED THIRTY DAYS AFTER THE FILING OF AN APPLICATION WITH THE 2,776
COMMISSION UNLESS THE COMMISSION SUSPENDS THAT APPROVAL FOR GOOD 2,777
CAUSE SHOWN. IN THE CASE OF SUCH A SUSPENSION, THE COMMISSION 2,778
66
SHALL ACT TO APPROVE OR DENY CERTIFICATION OR CERTIFICATION 2,779
RENEWAL TO THE APPLICANT NOT LATER THAN NINETY DAYS AFTER THE 2,780
DATE OF THE SUSPENSION. 2,781
(C) CAPABILITY STANDARDS ADOPTED IN RULES UNDER DIVISION 2,784
(B) OF THIS SECTION SHALL BE SUFFICIENT TO ENSURE COMPLIANCE WITH 2,785
THE MINIMUM SERVICE REQUIREMENTS ESTABLISHED UNDER SECTION 2,786
4928.10 OF THE REVISED CODE AND WITH SECTION 4928.09 OF THE 2,788
REVISED CODE. THE STANDARDS SHALL ALLOW FLEXIBILITY FOR 2,789
VOLUNTARY AGGREGATION, TO ENCOURAGE MARKET CREATIVITY IN 2,790
RESPONDING TO CONSUMER NEEDS AND DEMANDS, AND SHALL ALLOW 2,792
FLEXIBILITY FOR ELECTRIC SERVICES COMPANIES THAT EXCLUSIVELY 2,793
PROVIDE INSTALLATION OF SMALL ELECTRIC GENERATION FACILITIES, TO 2,794
PROVIDE EASE OF MARKET ACCESS. THE RULES SHALL INCLUDE 2,795
PROCEDURES FOR BIENNIALLY RENEWING CERTIFICATION. 2,796
(D) THE COMMISSION MAY SUSPEND, RESCIND, OR CONDITIONALLY 2,798
RESCIND THE CERTIFICATION OF ANY ELECTRIC UTILITY, ELECTRIC 2,800
SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 2,801
AGGREGATOR ISSUED UNDER THIS SECTION IF THE COMMISSION 2,802
DETERMINES, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, 2,803
THAT THE UTILITY, COMPANY, COOPERATIVE, OR AGGREGATOR HAS FAILED 2,804
TO COMPLY WITH ANY APPLICABLE CERTIFICATION STANDARDS OR HAS 2,805
ENGAGED IN ANTICOMPETITIVE OR UNFAIR, DECEPTIVE, OR 2,806
UNCONSCIONABLE ACTS OR PRACTICES IN THIS STATE. 2,807
(E) NO ELECTRIC DISTRIBUTION UTILITY ON AND AFTER THE 2,809
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE SHALL 2,810
KNOWINGLY DISTRIBUTE ELECTRICITY, TO A RETAIL CONSUMER IN THIS 2,811
STATE, FOR ANY SUPPLIER OF ELECTRICITY THAT HAS NOT BEEN 2,812
CERTIFIED BY THE COMMISSION PURSUANT TO THIS SECTION. 2,813
Sec. 4928.09. (A)(1) NO PERSON SHALL OPERATE IN THIS 2,815
STATE AS AN ELECTRIC UTILITY, AN ELECTRIC SERVICES COMPANY, OR A 2,816
BILLING AND COLLECTION AGENT ON AND AFTER THE STARTING DATE OF 2,817
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT PERSON FIRST DOES 2,819
BOTH OF THE FOLLOWING:
(a) CONSENTS IRREVOCABLY TO THE JURISDICTION OF THE COURTS 2,821
67
OF THIS STATE AND SERVICE OF PROCESS IN THIS STATE, INCLUDING, 2,822
WITHOUT LIMITATION, SERVICE OF SUMMONSES AND SUBPOENAS, FOR ANY 2,824
CIVIL OR CRIMINAL PROCEEDING ARISING OUT OF OR RELATING TO SUCH 2,825
OPERATION, BY PROVIDING THAT IRREVOCABLE CONSENT IN ACCORDANCE 2,826
WITH DIVISION (A)(4) OF THIS SECTION;
(b) DESIGNATES AN AGENT AUTHORIZED TO RECEIVE THAT SERVICE 2,828
OF PROCESS IN THIS STATE, BY FILING WITH THE COMMISSION A 2,829
DOCUMENT DESIGNATING THAT AGENT. 2,830
(2) NO PERSON SHALL CONTINUE TO OPERATE AS SUCH AN 2,832
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, OR BILLING AND 2,833
COLLECTION AGENT UNLESS THAT PERSON CONTINUES TO CONSENT TO SUCH 2,834
JURISDICTION AND SERVICE OF PROCESS IN THIS STATE AND CONTINUES 2,835
TO DESIGNATE AN AGENT AS PROVIDED UNDER THIS DIVISION, BY 2,836
REFILING IN ACCORDANCE WITH DIVISION (A)(4) OF THIS SECTION THE 2,837
APPROPRIATE DOCUMENTS FILED UNDER DIVISION (A)(1) OF THIS SECTION 2,838
OR, AS APPLICABLE, THE APPROPRIATE AMENDED DOCUMENTS FILED UNDER 2,839
DIVISION (A)(3) OF THIS SECTION. SUCH REFILING SHALL OCCUR 2,840
DURING THE MONTH OF DECEMBER OF EVERY FOURTH YEAR AFTER THE 2,841
INITIAL FILING OF A DOCUMENT UNDER DIVISION (A)(1) OF THIS 2,842
SECTION.
(3) IF THE ADDRESS OF THE PERSON FILING A DOCUMENT UNDER 2,844
DIVISION (A)(1) OR (2) OF THIS SECTION CHANGES, OR IF A PERSON'S 2,845
AGENT OR THE ADDRESS OF THE AGENT CHANGES, FROM THAT LISTED ON 2,846
THE MOST RECENTLY FILED OF SUCH DOCUMENTS, THE PERSON SHALL FILE
AN AMENDED DOCUMENT CONTAINING THE NEW INFORMATION. 2,847
(4) THE CONSENT AND DESIGNATION REQUIRED BY DIVISIONS 2,849
(A)(1) TO (3) OF THIS SECTION SHALL BE IN WRITING, ON FORMS 2,850
PRESCRIBED BY THE PUBLIC UTILITIES COMMISSION. THE ORIGINAL OF
EACH SUCH DOCUMENT OR AMENDED DOCUMENT SHALL BE LEGIBLE AND SHALL 2,851
BE FILED WITH THE COMMISSION, WITH A COPY FILED WITH THE OFFICE 2,852
OF THE CONSUMERS' COUNSEL AND WITH THE ATTORNEY GENERAL'S OFFICE. 2,853
(B) A PERSON WHO ENTERS THIS STATE PURSUANT TO A SUMMONS, 2,855
SUBPOENA, OR OTHER FORM OF PROCESS AUTHORIZED BY THIS SECTION IS 2,856
NOT SUBJECT TO ARREST OR SERVICE OF PROCESS, WHETHER CIVIL OR 2,857
68
CRIMINAL, IN CONNECTION WITH OTHER MATTERS THAT AROSE BEFORE THE 2,858
PERSON'S ENTRANCE INTO THIS STATE PURSUANT TO SUCH SUMMONS, 2,859
SUBPOENA, OR OTHER FORM OF PROCESS. 2,860
(C) DIVISIONS (A) AND (B) OF THIS SECTION DO NOT APPLY TO 2,862
ANY OF THE FOLLOWING: 2,863
(1) A CORPORATION INCORPORATED UNDER THE LAWS OF THIS 2,865
STATE THAT HAS APPOINTED A STATUTORY AGENT PURSUANT TO SECTION 2,866
1701.07 OR 1702.06 OF THE REVISED CODE; 2,867
(2) A FOREIGN CORPORATION LICENSED TO TRANSACT BUSINESS IN 2,869
THIS STATE THAT HAS APPOINTED A DESIGNATED AGENT PURSUANT TO 2,870
SECTION 1703.041 OF THE REVISED CODE; 2,871
(3) ANY OTHER PERSON THAT IS A RESIDENT OF THIS STATE OR 2,873
THAT FILES CONSENT TO SERVICE OF PROCESS AND DESIGNATES A 2,874
STATUTORY AGENT PURSUANT TO OTHER LAWS OF THIS STATE. 2,875
Sec. 4928.10. FOR THE PROTECTION OF CONSUMERS IN THIS 2,877
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 2,878
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE SPECIFYING 2,879
THE NECESSARY MINIMUM SERVICE REQUIREMENTS, ON OR AFTER THE 2,880
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, OF AN 2,881
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,882
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 2,883
UNDER SECTION 4928.08 OF THE REVISED CODE REGARDING THE PROVISION 2,884
DIRECTLY OR THROUGH ITS BILLING AND COLLECTION AGENT OF 2,885
COMPETITIVE RETAIL ELECTRIC SERVICES FOR WHICH IT IS SUBJECT TO
CERTIFICATION. RULES ADOPTED UNDER THIS SECTION SHALL INCLUDE A 2,887
PROHIBITION AGAINST UNFAIR, DECEPTIVE, AND UNCONSCIONABLE ACTS 2,888
AND PRACTICES IN THE MARKETING, SOLICITATION, AND SALE OF SUCH A 2,889
COMPETITIVE RETAIL ELECTRIC SERVICE AND IN THE ADMINISTRATION OF 2,890
ANY CONTRACT FOR SERVICE, AND ALSO SHALL INCLUDE ADDITIONAL 2,891
CONSUMER PROTECTIONS CONCERNING ALL OF THE FOLLOWING: 2,892
(A) CONTRACT DISCLOSURE. THE RULES SHALL INCLUDE 2,894
REQUIREMENTS THAT AN ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, 2,895
ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO 2,897
CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE DO BOTH 2,898
69
OF THE FOLLOWING:
(1) PROVIDE CONSUMERS WITH ADEQUATE, ACCURATE, AND 2,900
UNDERSTANDABLE PRICING AND TERMS AND CONDITIONS OF SERVICE, 2,901
INCLUDING ANY SWITCHING FEES, AND WITH A DOCUMENT CONTAINING THE 2,902
TERMS AND CONDITIONS OF PRICING AND SERVICE BEFORE THE CONSUMER 2,903
ENTERS INTO THE CONTRACT FOR SERVICE; 2,904
(2) DISCLOSE THE CONDITIONS UNDER WHICH A CUSTOMER MAY 2,906
RESCIND A CONTRACT WITHOUT PENALTY. 2,907
(B) SERVICE TERMINATION. THE RULES SHALL INCLUDE 2,909
DISCLOSURE OF THE TERMS IDENTIFYING HOW CUSTOMERS MAY SWITCH OR 2,910
TERMINATE SERVICE, INCLUDING ANY REQUIRED NOTICE AND ANY
PENALTIES. 2,911
(C) MINIMUM CONTENT OF CUSTOMER BILLS. THE RULES SHALL 2,913
INCLUDE ALL OF THE FOLLOWING REQUIREMENTS, WHICH SHALL BE 2,914
STANDARDIZED:
(1) PRICE DISCLOSURE AND DISCLOSURES OF TOTAL BILLING 2,916
UNITS FOR THE BILLING PERIOD AND HISTORICAL ANNUAL USAGE; 2,917
(2) TO THE MAXIMUM EXTENT PRACTICABLE, SEPARATE LISTING OF 2,919
EACH SERVICE COMPONENT TO ENABLE A CUSTOMER TO RECALCULATE ITS 2,920
BILL FOR ACCURACY; 2,921
(3) IDENTIFICATION OF THE SUPPLIER OF EACH SERVICE; 2,923
(4) STATEMENT OF WHERE AND HOW PAYMENT MAY BE MADE AND 2,925
PROVISION OF A TOLL-FREE OR LOCAL CUSTOMER ASSISTANCE AND 2,926
COMPLAINT NUMBER FOR THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,927
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR, AS 2,928
WELL AS A CONSUMER ASSISTANCE TELEPHONE NUMBER OR NUMBERS FOR 2,929
STATE AGENCIES, SUCH AS THE COMMISSION, THE OFFICE OF THE 2,930
CONSUMERS' COUNSEL, AND THE ATTORNEY GENERAL'S OFFICE, WITH THE 2,931
AVAILABLE HOURS NOTED;
(5) OTHER THAN FOR THE FIRST BILLING AFTER THE STARTING 2,933
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, HIGHLIGHTING AND 2,934
CLEAR EXPLANATION ON EACH CUSTOMER BILL, FOR TWO CONSECUTIVE 2,935
BILLING PERIODS, OF ANY CHANGES IN THE RATES, TERMS, AND 2,936
CONDITIONS OF SERVICE. 2,937
70
(D) DISCONNECTION AND SERVICE TERMINATION, INCLUDING 2,939
REQUIREMENTS WITH RESPECT TO MASTER-METERED BUILDINGS. THE RULES 2,940
SHALL INCLUDE POLICIES AND PROCEDURES THAT ARE CONSISTENT WITH 2,942
SECTIONS 4933.121 AND 4933.122 OF THE REVISED CODE AND THE 2,944
COMMISSION'S RULES ADOPTED UNDER THOSE SECTIONS, AND THAT PROVIDE
FOR ALL OF THE FOLLOWING: 2,945
(1) COORDINATION BETWEEN SUPPLIERS FOR THE PURPOSE OF 2,947
MAINTAINING SERVICE; 2,948
(2) THE ALLOCATION OF PARTIAL PAYMENTS BETWEEN SUPPLIERS 2,950
WHEN SERVICE COMPONENTS ARE JOINTLY BILLED; 2,951
(3) A PROHIBITION AGAINST BLOCKING, OR AUTHORIZING THE 2,953
BLOCKING OF, CUSTOMER ACCESS TO A NONCOMPETITIVE RETAIL ELECTRIC 2,954
SERVICE WHEN A CUSTOMER IS DELINQUENT IN PAYMENTS TO THE ELECTRIC 2,955
UTILITY OR ELECTRIC SERVICES COMPANY FOR A COMPETITIVE RETAIL 2,956
ELECTRIC SERVICE;
(4) A PROHIBITION AGAINST SWITCHING, OR AUTHORIZING THE 2,958
SWITCHING OF, A CUSTOMER'S SUPPLIER OF COMPETITIVE RETAIL 2,959
ELECTRIC SERVICE WITHOUT THE PRIOR CONSENT OF THE CUSTOMER IN 2,960
ACCORDANCE WITH APPROPRIATE CONFIRMATION PRACTICES, WHICH MAY 2,961
INCLUDE INDEPENDENT, THIRD-PARTY VERIFICATION PROCEDURES. 2,962
(5) A REQUIREMENT OF DISCLOSURE OF THE CONDITIONS UNDER 2,964
WHICH A CUSTOMER MAY RESCIND A DECISION TO SWITCH ITS SUPPLIER 2,965
WITHOUT PENALTY; 2,966
(6) SPECIFICATION OF ANY REQUIRED NOTICE AND ANY PENALTY 2,968
FOR EARLY TERMINATION OF CONTRACT. 2,969
(E) MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY. 2,971
HOWEVER, SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS 2,972
FOR ELECTRIC GENERATION SERVICE SHALL BE DETERMINED PRIMARILY 2,974
THROUGH MARKET EXPECTATIONS AND CONTRACTUAL RELATIONSHIPS. 2,975
(F) GENERATION RESOURCE MIX AND ENVIRONMENTAL 2,977
CHARACTERISTICS OF POWER SUPPLIES. THE RULES SHALL INCLUDE 2,978
REQUIREMENTS FOR DETERMINATION OF THE APPROXIMATE GENERATION
RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS OF THE POWER 2,979
SUPPLIES AND DISCLOSURE TO THE CUSTOMER PRIOR TO THE CUSTOMER 2,980
71
ENTERING INTO A CONTRACT TO PURCHASE AND FOUR TIMES PER YEAR 2,981
UNDER THE CONTRACT. THE RULES ALSO SHALL REQUIRE THAT THE 2,982
ELECTRIC UTILITY, ELECTRIC SERVICES COMPANY, ELECTRIC 2,983
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR PROVIDE, OR CAUSE ITS 2,984
BILLING AND COLLECTION AGENT TO PROVIDE, A CUSTOMER WITH 2,985
STANDARDIZED INFORMATION COMPARING THE PROJECTED, WITH THE ACTUAL
AND VERIFIABLE, RESOURCE MIX AND ENVIRONMENTAL CHARACTERISTICS. 2,986
THIS DISCLOSURE SHALL OCCUR NOT LESS THAN ANNUALLY OR NOT LESS 2,987
THAN ONCE DURING THE CONTRACT PERIOD IF THE CONTRACT PERIOD IS 2,988
LESS THAN ONE YEAR, AND PRIOR TO ANY RENEWAL OF A CONTRACT. 2,989
(G) CUSTOMER INFORMATION. THE RULES SHALL INCLUDE 2,991
REQUIREMENTS THAT THE ELECTRIC UTILITY, ELECTRIC SERVICES 2,993
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR MAKE 2,994
GENERIC CUSTOMER LOAD PATTERN INFORMATION AVAILABLE TO OTHER 2,995
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,996
BASIS, AND MAKE CUSTOMER-SPECIFIC INFORMATION AVAILABLE TO OTHER 2,997
ELECTRIC LIGHT COMPANIES ON A COMPARABLE AND NONDISCRIMINATORY 2,998
BASIS UNLESS, AS TO CUSTOMER-SPECIFIC INFORMATION, THE CUSTOMER 2,999
OBJECTS. THE RULES SHALL ENSURE THAT EACH SUCH UTILITY, COMPANY, 3,000
COOPERATIVE, OR AGGREGATOR PROVIDE CLEAR AND FREQUENT NOTICE TO 3,001
ITS CUSTOMERS OF THE RIGHT TO OBJECT AND OF APPLICABLE 3,002
PROCEDURES. THE RULES SHALL ESTABLISH THE EXACT LANGUAGE THAT 3,003
SHALL BE USED IN ALL SUCH NOTICES.
Sec. 4928.11. (A) FOR THE PROTECTION OF CONSUMERS IN THIS 3,005
STATE, THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES UNDER 3,007
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE THAT SPECIFY 3,008
MINIMUM SERVICE QUALITY, SAFETY, AND RELIABILITY REQUIREMENTS FOR 3,009
NONCOMPETITIVE RETAIL ELECTRIC SERVICES SUPPLIED BY AN ELECTRIC 3,010
UTILITY IN THIS STATE, TO THE EXTENT SUCH AUTHORITY IS NOT 3,011
PREEMPTED BY FEDERAL LAW. THE RULES SHALL INCLUDE PRESCRIPTIVE 3,012
STANDARDS FOR INSPECTION, MAINTENANCE, REPAIR, AND REPLACEMENT OF 3,013
THE TRANSMISSION AND DISTRIBUTION SYSTEMS OF ELECTRIC UTILITIES; 3,014
SHALL APPLY TO EACH SUBSTANTIAL TYPE OF TRANSMISSION OR 3,015
DISTRIBUTION EQUIPMENT OR FACILITY; SHALL ESTABLISH UNIFORM 3,016
72
INTERCONNECTION STANDARDS TO ENSURE TRANSMISSION AND DISTRIBUTION 3,017
SYSTEM SAFETY AND RELIABILITY AND SHALL OTHERWISE PROVIDE FOR 3,018
HIGH QUALITY, SAFE, AND RELIABLE ELECTRIC SERVICE; SHALL INCLUDE 3,019
STANDARDS FOR OPERATION, RELIABILITY, AND SAFETY DURING PERIODS 3,020
OF EMERGENCY AND DISASTER; AND SHALL INCLUDE VOLTAGE STANDARDS 3,021
FOR EFFICIENT OPERATION OF SINGLE-PHASE MOTORS. THE RULES 3,022
REGARDING INTERCONNECTION SHALL SEEK TO PREVENT BARRIERS TO NEW 3,024
TECHNOLOGY AND SHALL NOT MAKE COMPLIANCE UNDULY BURDENSOME OR 3,025
EXPENSIVE. WHEN QUESTIONS ARISE ABOUT SPECIFIC EQUIPMENT TO MEET 3,026
INTERCONNECTION STANDARDS, THE COMMISSION SHALL INITIATE 3,027
PROCEEDINGS OPEN TO THE PUBLIC TO SOLICIT COMMENTS FROM ALL 3,028
INTERESTED PARTIES. ADDITIONALLY, RULES UNDER THIS DIVISION 3,029
SHALL INCLUDE NONDISCRIMINATORY METERING STANDARDS. 3,030
(B) THE COMMISSION SHALL REQUIRE EACH ELECTRIC UTILITY TO 3,032
REPORT ANNUALLY TO THE COMMISSION ON AND AFTER THE STARTING DATE 3,033
OF COMPETITIVE RETAIL ELECTRIC SERVICE, REGARDING ITS COMPLIANCE 3,034
WITH THE RULES REQUIRED UNDER DIVISION (A) OF THIS SECTION. THE 3,035
COMMISSION SHALL MAKE THE FILED REPORTS AVAILABLE TO THE PUBLIC. 3,036
PERIODICALLY AS DETERMINED BY COMMISSION RULE UNDER DIVISION (A) 3,037
OF SECTION 4928.06 OF THE REVISED CODE AND IN A PROCEEDING 3,038
INITIATED UNDER DIVISION (B) OF SECTION 4928.16 OF THE REVISED 3,039
CODE, THE COMMISSION SHALL REVIEW A UTILITY'S REPORT TO DETERMINE 3,041
THE UTILITY'S COMPLIANCE AND MAY ACT PURSUANT TO DIVISION (B) OF 3,042
SECTION 4928.16 OF THE REVISED CODE TO ENFORCE COMPLIANCE. 3,043
Sec. 4928.12. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,045
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ENTITY SHALL 3,046
OWN OR CONTROL TRANSMISSION FACILITIES AS DEFINED UNDER FEDERAL 3,047
LAW AND LOCATED IN THIS STATE ON OR AFTER THE STARTING DATE OF 3,048
COMPETITIVE RETAIL ELECTRIC SERVICE UNLESS THAT ENTITY IS A 3,049
MEMBER OF, AND TRANSFERS CONTROL OF THOSE FACILITIES TO, ONE OR 3,050
MORE QUALIFYING TRANSMISSION ENTITIES, AS DESCRIBED IN DIVISION 3,051
(B) OF THIS SECTION, THAT ARE OPERATIONAL.
(B) AN ENTITY THAT OWNS OR CONTROLS TRANSMISSION 3,053
FACILITIES LOCATED IN THIS STATE COMPLIES WITH DIVISION (A) OF 3,055
73
THIS SECTION IF EACH TRANSMISSION ENTITY OF WHICH IT IS A MEMBER 3,056
MEETS ALL OF THE FOLLOWING SPECIFICATIONS: 3,057
(1) THE TRANSMISSION ENTITY IS APPROVED BY THE FEDERAL 3,059
ENERGY REGULATORY COMMISSION. 3,060
(2) THE TRANSMISSION ENTITY EFFECTS SEPARATE CONTROL OF 3,062
TRANSMISSION FACILITIES FROM CONTROL OF GENERATION FACILITIES. 3,063
(3) THE TRANSMISSION ENTITY IMPLEMENTS, TO THE EXTENT 3,065
REASONABLY POSSIBLE, POLICIES AND PROCEDURES DESIGNED TO MINIMIZE 3,066
PANCAKED TRANSMISSION RATES WITHIN THIS STATE. 3,067
(4) THE TRANSMISSION ENTITY IMPROVES SERVICE RELIABILITY 3,069
WITHIN THIS STATE. 3,070
(5) THE TRANSMISSION ENTITY ACHIEVES THE OBJECTIVES OF AN 3,072
OPEN AND COMPETITIVE ELECTRIC GENERATION MARKETPLACE, ELIMINATION 3,073
OF BARRIERS TO MARKET ENTRY, AND PRECLUSION OF CONTROL OF 3,074
BOTTLENECK ELECTRIC TRANSMISSION FACILITIES IN THE PROVISION OF 3,075
RETAIL ELECTRIC SERVICE. 3,076
(6) THE TRANSMISSION ENTITY IS OF SUFFICIENT SCOPE OR 3,078
OTHERWISE OPERATES TO SUBSTANTIALLY INCREASE ECONOMICAL SUPPLY 3,080
OPTIONS FOR CONSUMERS.
(7) THE GOVERNANCE STRUCTURE OR CONTROL OF THE 3,082
TRANSMISSION ENTITY IS INDEPENDENT OF THE USERS OF THE 3,083
TRANSMISSION FACILITIES, AND NO MEMBER OF ITS BOARD OF DIRECTORS 3,084
HAS AN AFFILIATION, WITH SUCH A USER OR WITH AN AFFILIATE OF A 3,085
USER DURING THE MEMBER'S TENURE ON THE BOARD, SUCH AS TO UNDULY 3,087
AFFECT THE TRANSMISSION ENTITY'S PERFORMANCE. FOR THE PURPOSE OF
DIVISION (B)(7) OF THIS SECTION, A "USER" IS ANY ENTITY OR 3,088
AFFILIATE OF THAT ENTITY THAT BUYS OR SELLS ELECTRIC ENERGY IN 3,089
THE TRANSMISSION ENTITY'S REGION OR IN A NEIGHBORING REGION. 3,090
(8) THE TRANSMISSION ENTITY OPERATES UNDER POLICIES THAT 3,092
PROMOTE POSITIVE PERFORMANCE DESIGNED TO SATISFY THE ELECTRICITY 3,093
REQUIREMENTS OF CUSTOMERS. 3,094
(9) THE TRANSMISSION ENTITY IS CAPABLE OF MAINTAINING 3,096
REAL-TIME RELIABILITY OF THE ELECTRIC TRANSMISSION SYSTEM, 3,097
ENSURING COMPARABLE AND NONDISCRIMINATORY TRANSMISSION ACCESS AND 3,098
74
NECESSARY SERVICES, MINIMIZING SYSTEM CONGESTION, AND FURTHER 3,099
ADDRESSING REAL OR POTENTIAL TRANSMISSION CONSTRAINTS. 3,100
(C) TO THE EXTENT THAT A TRANSMISSION ENTITY UNDER 3,102
DIVISION (A) OF THIS SECTION IS AUTHORIZED TO BUILD TRANSMISSION 3,104
FACILITIES, THAT TRANSMISSION ENTITY HAS THE POWERS PROVIDED IN 3,105
AND IS SUBJECT TO SECTIONS 1723.01 TO 1723.08 OF THE REVISED 3,106
CODE.
(D) FOR THE PURPOSE OF FORMING OR PARTICIPATING IN A 3,108
REGIONAL REGULATORY OVERSIGHT BODY OR MECHANISM DEVELOPED FOR ANY 3,109
TRANSMISSION ENTITY UNDER DIVISION (A) OF THIS SECTION THAT IS OF 3,110
REGIONAL SCOPE AND OPERATES WITHIN THIS STATE: 3,111
(1) THE COMMISSION SHALL MAKE JOINT INVESTIGATIONS, HOLD 3,113
JOINT HEARINGS, WITHIN OR OUTSIDE THIS STATE, AND ISSUE JOINT OR 3,114
CONCURRENT ORDERS IN CONJUNCTION OR CONCURRENCE WITH ANY OFFICIAL 3,115
OR AGENCY OF ANY STATE OR OF THE UNITED STATES, WHETHER IN THE 3,116
HOLDING OF THOSE INVESTIGATIONS OR HEARINGS, OR IN THE MAKING OF 3,118
THOSE ORDERS, THE COMMISSION IS FUNCTIONING UNDER AGREEMENTS OR 3,119
COMPACTS BETWEEN STATES, UNDER THE CONCURRENT POWER OF STATES TO 3,120
REGULATE INTERSTATE COMMERCE, AS AN AGENCY OF THE UNITED STATES, 3,121
OR OTHERWISE. 3,122
(2) THE COMMISSION SHALL NEGOTIATE AND ENTER INTO 3,124
AGREEMENTS OR COMPACTS WITH AGENCIES OF OTHER STATES FOR 3,125
COOPERATIVE REGULATORY EFFORTS AND FOR THE ENFORCEMENT OF THE 3,126
RESPECTIVE STATE LAWS REGARDING THE TRANSMISSION ENTITY. 3,127
(E) IF A QUALIFYING TRANSMISSION ENTITY IS NOT OPERATIONAL 3,130
AS CONTEMPLATED IN DIVISION (A) OF THIS SECTION, DIVISION (A)(13) 3,132
OF SECTION 4928.34 OF THE REVISED CODE, OR DIVISION (G) OF
SECTION 4928.35 OF THE REVISED CODE, THE COMMISSION BY RULE OR 3,133
ORDER SHALL TAKE SUCH MEASURES OR IMPOSE SUCH REQUIREMENTS ON ALL 3,135
FOR-PROFIT ENTITIES THAT OWN OR CONTROL ELECTRIC TRANSMISSION 3,136
FACILITIES LOCATED IN THIS STATE AS THE COMMISSION DETERMINES 3,137
NECESSARY AND PROPER TO ACHIEVE INDEPENDENT, NONDISCRIMINATORY 3,138
OPERATION OF, AND SEPARATE OWNERSHIP AND CONTROL OF, SUCH 3,139
ELECTRIC TRANSMISSION FACILITIES ON OR AFTER THE STARTING DATE OF 3,140
75
COMPETITIVE RETAIL ELECTRIC SERVICE. 3,141
Sec. 4928.13. THROUGH A PERIODIC FILING WITH THE PUBLIC 3,143
UTILITIES COMMISSION IN SUCH FORM AS THE COMMISSION SHALL 3,144
PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF THE 3,145
REVISED CODE, EACH ELECTRIC UTILITY THAT OWNS NUCLEAR GENERATION 3,146
FACILITIES LOCATED IN THIS STATE SHALL DEMONSTRATE COMPLIANCE 3,147
WITH DECOMMISSIONING REQUIREMENTS OF THE NUCLEAR REGULATORY
COMMISSION AND PUBLIC UTILITIES COMMISSION AND SHALL DEMONSTRATE 3,149
ADEQUATE FINANCING MECHANISMS TO FUND FACILITY DECOMMISSIONING. 3,150
Sec. 4928.14. (A) AFTER ITS MARKET DEVELOPMENT PERIOD, AN 3,152
ELECTRIC DISTRIBUTION UTILITY IN THIS STATE SHALL PROVIDE 3,153
CONSUMERS, ON A COMPARABLE AND NONDISCRIMINATORY BASIS WITHIN ITS 3,155
CERTIFIED TERRITORY, A MARKET-BASED STANDARD SERVICE OFFER OF ALL 3,157
COMPETITIVE RETAIL ELECTRIC SERVICES NECESSARY TO MAINTAIN 3,158
ESSENTIAL ELECTRIC SERVICE TO CONSUMERS, INCLUDING A FIRM SUPPLY 3,159
OF ELECTRIC GENERATION SERVICE. SUCH OFFER SHALL BE FILED WITH 3,160
THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE 3,161
REVISED CODE.
(B) AFTER THAT MARKET DEVELOPMENT PERIOD, EACH ELECTRIC 3,163
DISTRIBUTION UTILITY ALSO SHALL OFFER CUSTOMERS WITHIN ITS 3,164
CERTIFIED TERRITORY AN OPTION TO PURCHASE COMPETITIVE RETAIL 3,165
ELECTRIC SERVICE THE PRICE OF WHICH IS DETERMINED THROUGH A 3,166
COMPETITIVE BIDDING PROCESS. PRIOR TO JANUARY 1, 2004, THE 3,167
COMMISSION SHALL ADOPT RULES CONCERNING THE CONDUCT OF THE 3,168
COMPETITIVE BIDDING PROCESS, INCLUDING THE INFORMATION 3,169
REQUIREMENTS NECESSARY FOR CUSTOMERS TO CHOOSE THIS OPTION AND 3,170
THE REQUIREMENTS TO EVALUATE QUALIFIED BIDDERS. THE COMMISSION 3,171
MAY REQUIRE THAT THE COMPETITIVE BIDDING PROCESS BE REVIEWED BY 3,172
AN INDEPENDENT THIRD PARTY. NO GENERATION SUPPLIER SHALL BE 3,173
PROHIBITED FROM PARTICIPATING IN THE BIDDING PROCESS, PROVIDED 3,174
THAT ANY WINNING BIDDER SHALL BE CONSIDERED A CERTIFIED SUPPLIER 3,175
FOR PURPOSES OF OBLIGATIONS TO CUSTOMERS. AT THE ELECTION OF THE 3,176
ELECTRIC DISTRIBUTION UTILITY, AND APPROVAL OF THE COMMISSION, 3,177
THE COMPETITIVE BIDDING OPTION UNDER THIS DIVISION MAY BE USED AS 3,178
76
THE MARKET-BASED STANDARD OFFER REQUIRED BY DIVISION (A) OF THIS 3,179
SECTION. THE COMMISSION MAY DETERMINE AT ANY TIME THAT A 3,180
COMPETITIVE BIDDING PROCESS IS NOT REQUIRED, IF OTHER MEANS TO 3,181
ACCOMPLISH GENERALLY THE SAME OPTION FOR CUSTOMERS IS READILY 3,182
AVAILABLE IN THE MARKET AND A REASONABLE MEANS FOR CUSTOMER 3,183
PARTICIPATION IS DEVELOPED. 3,184
(C) AFTER THE MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 3,186
SUPPLIER TO PROVIDE RETAIL ELECTRIC GENERATION SERVICE TO 3,187
CUSTOMERS WITHIN THE CERTIFIED TERRITORY OF THE ELECTRIC 3,188
DISTRIBUTION UTILITY SHALL RESULT IN THE SUPPLIER'S CUSTOMERS, 3,189
AFTER REASONABLE NOTICE, DEFAULTING TO THE UTILITY'S STANDARD 3,190
SERVICE OFFER FILED UNDER DIVISION (A) OF THIS SECTION UNTIL THE 3,191
CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. A SUPPLIER IS DEEMED 3,192
UNDER THIS DIVISION TO HAVE FAILED TO PROVIDE SUCH SERVICE IF THE 3,194
COMMISSION FINDS, AFTER REASONABLE NOTICE AND OPPORTUNITY FOR 3,195
HEARING, THAT ANY OF THE FOLLOWING CONDITIONS ARE MET:
(1) THE SUPPLIER HAS DEFAULTED ON ITS CONTRACTS WITH 3,197
CUSTOMERS, IS IN RECEIVERSHIP, OR HAS FILED FOR BANKRUPTCY. 3,198
(2) THE SUPPLIER IS NO LONGER CAPABLE OF PROVIDING THE 3,200
SERVICE. 3,201
(3) THE SUPPLIER IS UNABLE TO PROVIDE DELIVERY TO 3,203
TRANSMISSION OR DISTRIBUTION FACILITIES FOR SUCH PERIOD OF TIME 3,204
AS MAY BE REASONABLY SPECIFIED BY COMMISSION RULE ADOPTED UNDER 3,205
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 3,206
(4) THE SUPPLIER'S CERTIFICATION HAS BEEN SUSPENDED, 3,208
CONDITIONALLY RESCINDED, OR RESCINDED UNDER DIVISION (D) OF 3,209
SECTION 4928.08 OF THE REVISED CODE.
Sec. 4928.15. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,211
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, NO ELECTRIC 3,213
UTILITY SHALL SUPPLY NONCOMPETITIVE RETAIL ELECTRIC DISTRIBUTION 3,215
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 3,216
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 3,217
FOR THAT SERVICE THAT IS CONSISTENT WITH THE STATE POLICY 3,218
SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED WITH
77
THE PUBLIC UTILITIES COMMISSION UNDER SECTION 4909.18 OF THE 3,220
REVISED CODE. THE SCHEDULE SHALL PROVIDE THAT ELECTRIC 3,221
DISTRIBUTION SERVICE UNDER THE SCHEDULE IS AVAILABLE TO ALL 3,222
CONSUMERS WITHIN THE UTILITY'S CERTIFIED TERRITORY AND TO ANY 3,223
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 3,224
BASIS. DISTRIBUTION SERVICE RATES AND CHARGES UNDER THE SCHEDULE 3,225
SHALL BE ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. 3,226
OF THE REVISED CODE. THE SCHEDULE SHALL INCLUDE AN OBLIGATION TO 3,228
BUILD DISTRIBUTION FACILITIES WHEN NECESSARY TO PROVIDE ADEQUATE 3,230
DISTRIBUTION SERVICE, PROVIDED THAT A CUSTOMER REQUESTING THAT
SERVICE MAY BE REQUIRED TO PAY ALL OR PART OF THE REASONABLE 3,232
INCREMENTAL COST OF THE NEW FACILITIES, IN ACCORDANCE WITH RULES, 3,233
POLICY, PRECEDENTS, OR ORDERS OF THE COMMISSION. 3,234
(B) EXCEPT AS OTHERWISE PROVIDED IN SECTIONS 4928.31 TO 3,236
4928.40 OF THE REVISED CODE AND EXCEPT AS PREEMPTED BY FEDERAL 3,238
LAW, NO ELECTRIC UTILITY SHALL SUPPLY THE TRANSMISSION SERVICE OR 3,239
ANCILLARY SERVICE COMPONENT OF NONCOMPETITIVE RETAIL ELECTRIC 3,240
SERVICE IN THIS STATE ON OR AFTER THE STARTING DATE OF 3,241
COMPETITIVE RETAIL ELECTRIC SERVICE EXCEPT PURSUANT TO A SCHEDULE 3,242
FOR THAT SERVICE COMPONENT THAT IS CONSISTENT WITH THE STATE 3,243
POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE AND FILED 3,244
WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED CODE. 3,245
THE SCHEDULE SHALL PROVIDE THAT TRANSMISSION OR ANCILLARY SERVICE 3,246
UNDER THE SCHEDULE IS AVAILABLE TO ALL CONSUMERS AND TO ANY 3,247
SUPPLIER TO THOSE CONSUMERS ON A NONDISCRIMINATORY AND COMPARABLE 3,248
BASIS. SERVICE RATES AND CHARGES UNDER THE SCHEDULE SHALL BE 3,249
ESTABLISHED IN ACCORDANCE WITH CHAPTERS 4905. AND 4909. OF THE 3,251
REVISED CODE.
(C) A SELF-GENERATOR SHALL HAVE ACCESS TO BACKUP 3,253
ELECTRICITY SUPPLY FROM ITS COMPETITIVE ELECTRIC GENERATION 3,254
SERVICE PROVIDER AT A RATE TO BE DETERMINED BY CONTRACT. 3,255
Sec. 4928.16. (A)(1) THE PUBLIC UTILITIES COMMISSION HAS 3,257
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 3,258
COMPLAINT OF ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 3,259
78
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 3,260
ELECTRIC SERVICE, REGARDING THE PROVISION BY AN ELECTRIC UTILITY, 3,261
ELECTRIC SERVICES COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL 3,262
AGGREGATOR SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE
REVISED CODE OF ANY SERVICE FOR WHICH IT IS SUBJECT TO 3,263
CERTIFICATION.
(2) THE COMMISSION ALSO HAS JURISDICTION UNDER SECTION 3,265
4905.26 OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 3,266
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 3,268
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 3,269
DETERMINE WHETHER AN ELECTRIC UTILITY HAS VIOLATED OR FAILED TO 3,270
COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.15, ANY 3,271
PROVISION OF DIVISIONS (A) TO (D) OF SECTION 4928.35 OF THE 3,274
REVISED CODE, OR ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE 3,276
SECTIONS; OR WHETHER AN ELECTRIC SERVICES COMPANY, ELECTRIC
COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT TO CERTIFICATION 3,278
UNDER SECTION 4928.08 OF THE REVISED CODE HAS VIOLATED OR FAILED 3,280
TO COMPLY WITH ANY PROVISION OF SECTIONS 4928.01 TO 4928.10 OF 3,281
THE REVISED CODE REGARDING A COMPETITIVE RETAIL ELECTRIC SERVICE 3,282
FOR WHICH IT IS SUBJECT TO CERTIFICATION OR ANY RULE OR ORDER 3,283
ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,285
(3) IF A CONTRACT BETWEEN A MERCANTILE COMMERCIAL CUSTOMER 3,287
AND AN ELECTRIC SERVICES COMPANY STATES THAT THE FORUM FOR A 3,288
COMMERCIAL DISPUTE INVOLVING THAT COMPANY IS THROUGH A CERTIFIED 3,289
COMMERCIAL ARBITRATION PROCESS, THAT PROCESS SET FORTH IN THE 3,290
CONTRACT AND AGREED TO BY THE SIGNATORIES SHALL BE THE EXCLUSIVE 3,291
FORUM UNLESS ALL PARTIES TO THE CONTRACT AGREE IN WRITING TO AN 3,293
AMENDED PROCESS. THE COMPANY SHALL NOTIFY THE COMMISSION FOR 3,294
INFORMATIONAL PURPOSES OF ALL MATTERS FOR WHICH A CONTRACT REMEDY 3,295
IS INVOKED TO RESOLVE A DISPUTE.
(4) THE COMMISSION, BY RULE ADOPTED PURSUANT TO DIVISION 3,297
(A) OF SECTION 4928.06 OF THE REVISED CODE, SHALL ADOPT 3,298
ALTERNATIVE DISPUTE RESOLUTION PROCEDURES FOR COMPLAINTS BY 3,299
NONMERCANTILE, NONRESIDENTIAL CUSTOMERS, INCLUDING ARBITRATION 3,300
79
THROUGH A CERTIFIED COMMERCIAL ARBITRATION PROCESS AND AT THE 3,301
COMMISSION. THE COMMISSION ALSO BY SUCH RULE MAY ADOPT 3,302
ALTERNATIVE DISPUTE RESOLUTION PROCEDURES FOR COMPLAINTS BY 3,303
RESIDENTIAL CUSTOMERS.
(B) IN ADDITION TO ITS AUTHORITY UNDER DIVISION (C) OF 3,305
SECTION 4928.08 OF THE REVISED CODE AND TO ANY OTHER REMEDIES 3,307
PROVIDED BY LAW, THE COMMISSION, AFTER REASONABLE NOTICE AND 3,309
OPPORTUNITY FOR HEARING IN ACCORDANCE WITH SECTION 4905.26 OF THE 3,311
REVISED CODE, MAY DO ANY OF THE FOLLOWING: 3,312
(1) ORDER RESCISSION OF A CONTRACT, OR RESTITUTION TO 3,314
CUSTOMERS INCLUDING DAMAGES DUE TO ELECTRIC POWER FLUCTUATIONS, 3,315
IN ANY COMPLAINT BROUGHT PURSUANT TO DIVISION (A)(1) OR (2) OF 3,316
THIS SECTION; 3,317
(2) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,319
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,321
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC UTILITY 3,322
HAS VIOLATED OR FAILED TO COMPLY WITH ANY PROVISION OF SECTIONS 3,323
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,324
SECTION 4928.35 OF THE REVISED CODE, OR ANY RULE OR ORDER ADOPTED 3,328
OR ISSUED UNDER THOSE SECTIONS. IN ADDITION, THE COMMISSION MAY
ORDER ANY REMEDY PROVIDED UNDER SECTION 4905.22, 4905.37, OR 3,329
4905.38 OF THE REVISED CODE IF THE VIOLATION OR FAILURE TO COMPLY 3,330
BY AN ELECTRIC UTILITY RELATED TO THE PROVISION OF A 3,331
NONCOMPETITIVE RETAIL ELECTRIC SERVICE. 3,332
(3) ORDER ANY REMEDY OR FORFEITURE PROVIDED UNDER SECTIONS 3,334
4905.54 TO 4905.60 AND 4905.64 OF THE REVISED CODE UPON A FINDING 3,335
UNDER DIVISION (A)(2) OF THIS SECTION THAT THE ELECTRIC SERVICES 3,337
COMPANY, ELECTRIC COOPERATIVE, OR GOVERNMENTAL AGGREGATOR SUBJECT 3,338
TO CERTIFICATION UNDER SECTION 4928.08 OF THE REVISED CODE HAS 3,340
VIOLATED OR FAILED TO COMPLY, REGARDING A COMPETITIVE RETAIL 3,342
ELECTRIC SERVICE FOR WHICH IT IS SUBJECT TO CERTIFICATION, WITH 3,343
ANY PROVISION OF SECTIONS 4928.01 TO 4928.10 OF THE REVISED CODE 3,345
OR ANY RULE OR ORDER ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,346
(C)(1) IN ADDITION TO THE AUTHORITY CONFERRED UNDER 3,348
80
SECTION 4911.15 OF THE REVISED CODE, THE CONSUMERS' COUNSEL MAY 3,349
FILE A COMPLAINT UNDER DIVISION (A)(1) OR (2) OF THIS SECTION ON 3,350
BEHALF OF RESIDENTIAL CONSUMERS IN THIS STATE OR APPEAR BEFORE 3,351
THE COMMISSION AS A REPRESENTATIVE OF THOSE CONSUMERS PURSUANT TO 3,353
ANY COMPLAINT FILED UNDER DIVISION (A)(1) OR (2) OF THIS SECTION. 3,354
(2) IN ADDITION TO THE AUTHORITY CONFERRED UNDER SECTION 3,356
4911.19 OF THE REVISED CODE, THE CONSUMERS' COUNSEL, UPON 3,357
REASONABLE GROUNDS ON AND AFTER THE STARTING DATE OF COMPETITIVE 3,358
RETAIL ELECTRIC SERVICE, MAY FILE WITH THE COMMISSION UNDER 3,359
SECTION 4905.26 OF THE REVISED CODE A COMPLAINT FOR DISCOVERY IF 3,360
THE RECIPIENT OF AN INQUIRY UNDER SECTION 4911.19 OF THE REVISED 3,361
CODE FAILS TO PROVIDE A RESPONSE WITHIN THE TIME SPECIFIED IN 3,362
THAT SECTION.
(D) SECTION 4905.61 OF THE REVISED CODE APPLIES TO A 3,364
VIOLATION BY AN ELECTRIC UTILITY OF, OR TO A FAILURE OF AN 3,365
ELECTRIC UTILITY TO COMPLY WITH, ANY PROVISION OF SECTIONS 3,366
4928.01 TO 4928.15, ANY PROVISION OF DIVISIONS (A) TO (D) OF 3,367
SECTION 4928.35 OF THE REVISED CODE, OR ANY RULE OR ORDER ADOPTED 3,368
OR ISSUED UNDER THOSE SECTIONS. 3,369
Sec. 4928.17. (A) EXCEPT AS OTHERWISE PROVIDED IN 3,371
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE AND BEGINNING ON 3,372
THE STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, NO 3,373
ELECTRIC UTILITY SHALL ENGAGE IN THIS STATE, EITHER DIRECTLY OR 3,374
THROUGH AN AFFILIATE, IN THE BUSINESSES OF SUPPLYING A 3,375
NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING A 3,376
COMPETITIVE RETAIL ELECTRIC SERVICE, OR IN THE BUSINESSES OF 3,377
SUPPLYING A NONCOMPETITIVE RETAIL ELECTRIC SERVICE AND SUPPLYING 3,378
A PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE, UNLESS 3,379
THE UTILITY IMPLEMENTS AND OPERATES UNDER A CORPORATE SEPARATION 3,380
PLAN THAT IS APPROVED BY THE PUBLIC UTILITIES COMMISSION UNDER 3,381
THIS SECTION, IS CONSISTENT WITH THE POLICY SPECIFIED IN SECTION 3,382
4928.02 OF THE REVISED CODE, AND ACHIEVES ALL OF THE FOLLOWING: 3,383
(1) THE PLAN PROVIDES, AT MINIMUM, FOR THE PROVISION OF 3,385
THE COMPETITIVE RETAIL ELECTRIC SERVICE OR THE NONELECTRIC 3,386
81
PRODUCT OR SERVICE THROUGH A FULLY SEPARATED AFFILIATE OF THE 3,387
UTILITY, AND THE PLAN INCLUDES SEPARATE ACCOUNTING REQUIREMENTS, 3,388
THE CODE OF CONDUCT AS ORDERED BY THE COMMISSION PURSUANT TO A 3,390
RULE IT SHALL ADOPT UNDER DIVISION (A) OF SECTION 4928.06 OF THE 3,391
REVISED CODE, AND SUCH OTHER MEASURES AS ARE NECESSARY TO
EFFECTUATE THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED 3,393
CODE.
(2) THE PLAN SATISFIES THE PUBLIC INTEREST IN PREVENTING 3,395
UNFAIR COMPETITIVE ADVANTAGE AND PREVENTING THE ABUSE OF MARKET 3,396
POWER.
(3) THE PLAN IS SUFFICIENT TO ENSURE THAT THE UTILITY WILL 3,398
NOT EXTEND ANY UNDUE PREFERENCE OR ADVANTAGE TO ANY AFFILIATE, 3,399
DIVISION, OR PART OF ITS OWN BUSINESS ENGAGED IN THE BUSINESS OF 3,400
SUPPLYING THE COMPETITIVE RETAIL ELECTRIC SERVICE OR NONELECTRIC 3,401
PRODUCT OR SERVICE, INCLUDING, BUT NOT LIMITED TO, UTILITY 3,402
RESOURCES SUCH AS TRUCKS, TOOLS, OFFICE EQUIPMENT, OFFICE SPACE, 3,403
SUPPLIES, CUSTOMER AND MARKETING INFORMATION, ADVERTISING, 3,404
BILLING AND MAILING SYSTEMS, PERSONNEL, AND TRAINING, WITHOUT
COMPENSATION BASED UPON FULLY LOADED EMBEDDED COSTS CHARGED TO 3,405
THE AFFILIATE; AND TO ENSURE THAT ANY SUCH AFFILIATE, DIVISION, 3,407
OR PART WILL NOT RECEIVE UNDUE PREFERENCE OR ADVANTAGE FROM ANY 3,408
AFFILIATE, DIVISION, OR PART OF THE BUSINESS ENGAGED IN BUSINESS 3,409
OF SUPPLYING THE NONCOMPETITIVE RETAIL ELECTRIC SERVICE. NO SUCH 3,410
UTILITY, AFFILIATE, DIVISION, OR PART SHALL EXTEND SUCH UNDUE 3,411
PREFERENCE. NOTWITHSTANDING ANY OTHER DIVISION OF THIS SECTION, 3,412
A UTILITY'S OBLIGATION UNDER DIVISION (A)(3) OF THIS SECTION 3,413
SHALL BE EFFECTIVE JANUARY 1, 2000. 3,414
(B) THE COMMISSION MAY APPROVE, MODIFY AND APPROVE, OR 3,416
DISAPPROVE A CORPORATE SEPARATION PLAN FILED WITH THE COMMISSION 3,417
UNDER DIVISION (A) OF THIS SECTION. AS PART OF THE CODE OF 3,418
CONDUCT REQUIRED UNDER DIVISION (A)(1) OF THIS SECTION, THE 3,419
COMMISSION SHALL ADOPT RULES PURSUANT TO DIVISION (A) OF SECTION 3,420
4928.06 OF THE REVISED CODE REGARDING CORPORATE SEPARATION AND 3,421
PROCEDURES FOR PLAN FILING AND APPROVAL. THE RULES SHALL INCLUDE 3,422
82
LIMITATIONS ON AFFILIATE PRACTICES SOLELY FOR THE PURPOSE OF 3,423
MAINTAINING A SEPARATION OF THE AFFILIATE'S BUSINESS FROM THE 3,424
BUSINESS OF THE UTILITY TO PREVENT UNFAIR COMPETITIVE ADVANTAGE 3,426
BY VIRTUE OF THAT RELATIONSHIP. THE RULES ALSO SHALL INCLUDE AN 3,427
OPPORTUNITY FOR ANY PERSON HAVING A REAL AND SUBSTANTIAL INTEREST
IN THE CORPORATE SEPARATION PLAN TO FILE SPECIFIC OBJECTIONS TO 3,429
THE PLAN AND PROPOSE SPECIFIC RESPONSES TO ISSUES RAISED IN THE 3,431
OBJECTIONS, WHICH OBJECTIONS AND RESPONSES THE COMMISSION SHALL 3,432
ADDRESS IN ITS FINAL ORDER. PRIOR TO COMMISSION APPROVAL OF THE 3,433
PLAN, THE COMMISSION SHALL AFFORD A HEARING UPON THOSE ASPECTS OF 3,434
THE PLAN THAT THE COMMISSION DETERMINES REASONABLY REQUIRE A 3,435
HEARING. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF A 3,436
SUBSTANTIALLY INADEQUATE PLAN UNDER THIS SECTION. 3,437
(C) THE COMMISSION SHALL ISSUE AN ORDER APPROVING OR 3,439
MODIFYING AND APPROVING A CORPORATE SEPARATION PLAN UNDER THIS 3,440
SECTION, TO BE EFFECTIVE ON THE DATE SPECIFIED IN THE ORDER, ONLY 3,442
UPON FINDINGS THAT THE PLAN REASONABLY COMPLIES WITH THE 3,443
REQUIREMENTS OF DIVISION (A) OF THIS SECTION AND WILL PROVIDE FOR 3,444
ONGOING COMPLIANCE WITH THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE. HOWEVER, FOR GOOD CAUSE SHOWN, THE 3,446
COMMISSION MAY ISSUE AN ORDER APPROVING OR MODIFYING AND
APPROVING A CORPORATE SEPARATION PLAN UNDER THIS SECTION THAT 3,447
DOES NOT COMPLY WITH DIVISION (A)(1) OF THIS SECTION BUT COMPLIES 3,448
WITH SUCH FUNCTIONAL SEPARATION REQUIREMENTS AS THE COMMISSION 3,449
AUTHORIZES TO APPLY FOR AN INTERIM PERIOD PRESCRIBED IN THE 3,451
ORDER, UPON A FINDING THAT SUCH ALTERNATIVE PLAN WILL PROVIDE FOR 3,452
ONGOING COMPLIANCE WITH THE POLICY SPECIFIED IN SECTION 4928.02 3,453
OF THE REVISED CODE. 3,454
(D) ANY PARTY MAY SEEK AN AMENDMENT TO A CORPORATE 3,456
SEPARATION PLAN APPROVED UNDER THIS SECTION, AND THE COMMISSION, 3,457
PURSUANT TO A REQUEST FROM ANY PARTY OR ON ITS OWN INITIATIVE, 3,458
MAY ORDER AS IT CONSIDERS NECESSARY THE FILING OF AN AMENDED 3,459
CORPORATE SEPARATION PLAN TO REFLECT CHANGED CIRCUMSTANCES. 3,460
(E) NOTWITHSTANDING SECTION 4905.20, 4905.21, 4905.46, OR 3,462
83
4905.48 OF THE REVISED CODE, AN ELECTRIC UTILITY MAY DIVEST 3,463
ITSELF OF ANY GENERATING ASSET AT ANY TIME WITHOUT COMMISSION 3,464
APPROVAL, SUBJECT TO THE PROVISIONS OF TITLE XLIX OF THE REVISED 3,465
CODE RELATING TO THE TRANSFER OF TRANSMISSION, DISTRIBUTION, OR
ANCILLARY SERVICE PROVIDED BY SUCH GENERATING ASSET. 3,466
Sec. 4928.18. (A) NOTWITHSTANDING DIVISION (D)(2)(a) OF 3,469
SECTION 4909.15 OF THE REVISED CODE, NOTHING IN THIS CHAPTER 3,470
PREVENTS THE PUBLIC UTILITIES COMMISSION FROM EXERCISING ITS 3,471
AUTHORITY UNDER TITLE XLIX OF THE REVISED CODE TO PROTECT 3,473
CUSTOMERS OF RETAIL ELECTRIC SERVICE SUPPLIED BY AN ELECTRIC
UTILITY FROM ANY ADVERSE EFFECT OF THE UTILITY'S PROVISION OF A 3,474
PRODUCT OR SERVICE OTHER THAN RETAIL ELECTRIC SERVICE. 3,476
(B) THE COMMISSION HAS JURISDICTION UNDER SECTION 4905.26 3,478
OF THE REVISED CODE, UPON COMPLAINT OF ANY PERSON OR UPON 3,479
COMPLAINT OR INITIATIVE OF THE COMMISSION ON OR AFTER THE 3,481
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE, TO 3,482
DETERMINE WHETHER AN ELECTRIC UTILITY OR ITS AFFILIATE HAS 3,483
VIOLATED ANY PROVISION OF SECTION 4928.17 OF THE REVISED CODE OR
AN ORDER ISSUED OR RULE ADOPTED UNDER THAT SECTION. FOR THIS 3,485
PURPOSE, THE COMMISSION MAY EXAMINE SUCH BOOKS, ACCOUNTS, OR 3,486
OTHER RECORDS KEPT BY AN ELECTRIC UTILITY OR ITS AFFILIATE AS MAY 3,487
RELATE TO THE BUSINESSES FOR WHICH CORPORATE SEPARATION IS 3,488
REQUIRED UNDER SECTION 4928.17 OF THE REVISED CODE, AND MAY 3,489
INVESTIGATE SUCH UTILITY OR AFFILIATE OPERATIONS AS MAY RELATE TO
THOSE BUSINESSES AND INVESTIGATE THE INTERRELATIONSHIP OF THOSE 3,491
OPERATIONS. ANY SUCH EXAMINATION OR INVESTIGATION BY THE
COMMISSION SHALL BE GOVERNED BY CHAPTER 4903. OF THE REVISED 3,493
CODE.
(C) IN ADDITION TO ANY REMEDIES OTHERWISE PROVIDED BY LAW, 3,495
THE COMMISSION, REGARDING A DETERMINATION OF A VIOLATION PURSUANT 3,496
TO DIVISION (B) OF THIS SECTION, MAY DO ANY OF THE FOLLOWING: 3,498
(1) ISSUE AN ORDER DIRECTING THE UTILITY OR AFFILIATE TO 3,500
COMPLY;
(2) MODIFY AN ORDER AS THE COMMISSION FINDS REASONABLE AND 3,502
84
APPROPRIATE AND ORDER THE UTILITY OR AFFILIATE TO COMPLY WITH THE 3,503
MODIFIED ORDER; 3,504
(3) SUSPEND OR ABROGATE AN ORDER, IN WHOLE OR IN PART; 3,506
(4) ISSUE AN ORDER THAT THE UTILITY OR AFFILIATE PAY 3,508
RESTITUTION TO ANY PERSON INJURED BY THE VIOLATION OR FAILURE TO 3,509
COMPLY;
(D) IN ADDITION TO ANY REMEDIES OTHERWISE PROVIDED BY LAW, 3,511
THE COMMISSION, REGARDING A DETERMINATION OF A VIOLATION PURSUANT 3,512
TO DIVISION (B) OF THIS SECTION AND COMMENSURATE WITH THE 3,513
SEVERITY OF THE VIOLATION, THE SOURCE OF THE VIOLATION, ANY 3,514
PATTERN OF VIOLATIONS, OR ANY MONETARY DAMAGES CAUSED BY THE 3,516
VIOLATION, MAY DO EITHER OF THE FOLLOWING:
(1) IMPOSE A FORFEITURE ON THE UTILITY OR AFFILIATE OF UP 3,518
TO TWENTY-FIVE THOUSAND DOLLARS PER DAY PER VIOLATION. THE 3,520
RECOVERY AND DEPOSIT OF ANY SUCH FORFEITURE SHALL BE SUBJECT TO 3,521
SECTIONS 4905.57 AND 4905.59 OF THE REVISED CODE.
(2) REGARDING A VIOLATION BY AN ELECTRIC UTILITY RELATING 3,523
TO A CORPORATE SEPARATION PLAN INVOLVING COMPETITIVE RETAIL 3,525
ELECTRIC SERVICE, SUSPEND OR ABROGATE ALL OR PART OF AN ORDER, TO 3,526
THE EXTENT IT IS IN EFFECT, AUTHORIZING AN OPPORTUNITY FOR THE 3,527
UTILITY TO RECEIVE TRANSITION REVENUES UNDER A TRANSITION PLAN 3,528
APPROVED BY THE COMMISSION UNDER SECTION 4928.33 OF THE REVISED 3,529
CODE.
CORPORATE SEPARATION UNDER THIS SECTION DOES NOT PROHIBIT 3,531
THE COMMON USE OF EMPLOYEE BENEFIT PLANS, FACILITIES, EQUIPMENT, 3,532
OR EMPLOYEES, SUBJECT TO PROPER ACCOUNTING AND THE CODE OF 3,533
CONDUCT ORDERED BY THE COMMISSION AS PROVIDED IN DIVISION (A)(1) 3,534
OF THIS SECTION.
(E) SECTION 4905.61 OF THE REVISED CODE APPLIES IN THE 3,536
CASE OF ANY VIOLATION OF SECTION 4928.17 OF THE REVISED CODE OR 3,537
OF ANY RULE ADOPTED OR ORDER ISSUED UNDER THAT SECTION. 3,538
Sec. 4928.19. AS PART OF THEIR ONGOING CONSUMER EDUCATION 3,540
EFFORTS, THE PUBLIC UTILITIES COMMISSION AND THE OFFICE OF THE 3,541
CONSUMERS' COUNSEL SHALL ENGAGE IN COOPERATIVE AGENCY EFFORTS TO 3,542
85
EDUCATE CONSUMERS IN THIS STATE REGARDING ELECTRIC INDUSTRY 3,543
RESTRUCTURING UNDER THIS CHAPTER. 3,544
Sec. 4928.20. (A) ON OR AFTER THE STARTING DATE OF 3,546
COMPETITIVE RETAIL ELECTRIC SERVICE, THE LEGISLATIVE AUTHORITY OF 3,547
A MUNICIPAL CORPORATION MAY ADOPT AN ORDINANCE, OR THE BOARD OF 3,548
TOWNSHIP TRUSTEES OF A TOWNSHIP OR THE BOARD OF COUNTY 3,549
COMMISSIONERS OF A COUNTY MAY ADOPT A RESOLUTION, UNDER WHICH IT 3,550
MAY AGGREGATE IN ACCORDANCE WITH THIS SECTION THE RETAIL 3,551
ELECTRICAL LOADS LOCATED, RESPECTIVELY, WITHIN THE MUNICIPAL 3,552
CORPORATION, TOWNSHIP, OR UNINCORPORATED AREA OF THE COUNTY AND, 3,553
FOR THAT PURPOSE, MAY ENTER INTO SERVICE AGREEMENTS TO FACILITATE 3,554
FOR THOSE LOADS THE SALE AND PURCHASE OF ELECTRICITY. THE 3,555
LEGISLATIVE AUTHORITY OR BOARD ALSO MAY EXERCISE SUCH AUTHORITY 3,556
JOINTLY WITH ANY OTHER SUCH LEGISLATIVE AUTHORITY OR BOARD. AN 3,557
ORDINANCE OR RESOLUTION UNDER THIS DIVISION SHALL SPECIFY WHETHER 3,558
THE AGGREGATION WILL OCCUR ONLY WITH THE PRIOR CONSENT OF EACH 3,559
PERSON OWNING, OCCUPYING, CONTROLLING, OR USING AN ELECTRIC LOAD 3,560
CENTER PROPOSED TO BE AGGREGATED OR WILL OCCUR AUTOMATICALLY FOR 3,561
ALL SUCH PERSONS PURSUANT TO THE OPT-OUT REQUIREMENTS OF DIVISION 3,562
(D) OF THIS SECTION. NOTHING IN THIS DIVISION, HOWEVER, 3,563
AUTHORIZES THE AGGREGATION OF SUCH RETAIL ELECTRIC LOADS OF AN 3,565
ELECTRIC LOAD CENTER, AS DEFINED IN SECTION 4933.81 OF THE
REVISED CODE, THAT IS LOCATED IN THE CERTIFIED TERRITORY OF A 3,567
NONPROFIT ELECTRIC SUPPLIER UNDER SECTIONS 4933.81 TO 4933.90 OF
THE REVISED CODE OR AN ELECTRIC LOAD CENTER SERVED BY 3,568
TRANSMISSION OR DISTRIBUTION FACILITIES OF A MUNICIPAL ELECTRIC 3,569
UTILITY.
(B) IF AN ORDINANCE OR RESOLUTION ADOPTED UNDER DIVISION 3,572
(A) OF THIS SECTION SPECIFIES THAT AGGREGATION WILL OCCUR 3,573
AUTOMATICALLY AS DESCRIBED IN THAT DIVISION, THE ORDINANCE OR 3,574
RESOLUTION SHALL DIRECT THE BOARD OF ELECTIONS TO SUBMIT THE 3,575
QUESTION OF THE AUTHORITY TO AGGREGATE TO THE ELECTORS OF THE 3,576
RESPECTIVE MUNICIPAL CORPORATION, TOWNSHIP, OR UNINCORPORATED 3,577
AREA OF A COUNTY AT A SPECIAL ELECTION ON THE DAY OF THE NEXT 3,578
86
PRIMARY OR GENERAL ELECTION IN THE MUNICIPAL CORPORATION, 3,579
TOWNSHIP, OR COUNTY. THE LEGISLATIVE AUTHORITY OR BOARD SHALL 3,580
CERTIFY A COPY OF THE ORDINANCE OR RESOLUTION TO THE BOARD OF 3,581
ELECTIONS NOT LESS THAN SEVENTY-FIVE DAYS BEFORE THE DAY OF THE 3,582
SPECIAL ELECTION. NO ORDINANCE OR RESOLUTION ADOPTED UNDER 3,583
DIVISION (A) OF THIS SECTION THAT PROVIDES FOR AN ELECTION UNDER 3,584
THIS DIVISION SHALL TAKE EFFECT UNLESS APPROVED BY A MAJORITY OF 3,585
THE ELECTORS VOTING UPON THE ORDINANCE OR RESOLUTION AT THE
ELECTION HELD PURSUANT TO THIS DIVISION. 3,586
(C) UPON THE APPLICABLE REQUISITE AUTHORITY UNDER 3,588
DIVISIONS (A) AND (B) OF THIS SECTION, THE LEGISLATIVE AUTHORITY 3,589
OR BOARD SHALL DEVELOP A PLAN OF OPERATION AND GOVERNANCE FOR THE 3,590
AGGREGATION PROGRAM SO AUTHORIZED. BEFORE ADOPTING A PLAN UNDER 3,591
THIS DIVISION, THE LEGISLATIVE AUTHORITY OR BOARD SHALL HOLD AT 3,592
LEAST TWO PUBLIC HEARINGS ON THE PLAN. BEFORE THE FIRST HEARING, 3,593
THE LEGISLATIVE AUTHORITY OR BOARD SHALL PUBLISH NOTICE OF THE 3,594
HEARINGS ONCE A WEEK FOR TWO CONSECUTIVE WEEKS IN A NEWSPAPER OF 3,595
GENERAL CIRCULATION IN THE JURISDICTION. THE NOTICE SHALL 3,596
SUMMARIZE THE PLAN AND STATE THE DATE, TIME, AND LOCATION OF EACH 3,597
HEARING. 3,598
(D) NO LEGISLATIVE AUTHORITY OR BOARD, PURSUANT TO AN 3,600
ORDINANCE OR RESOLUTION UNDER DIVISIONS (A) AND (B) OF THIS 3,601
SECTION THAT PROVIDES FOR AUTOMATIC AGGREGATION AS DESCRIBED IN 3,602
DIVISION (A) OF THIS SECTION, SHALL AGGREGATE THE ELECTRICAL LOAD 3,603
OF ANY ELECTRIC LOAD CENTER LOCATED WITHIN ITS JURISDICTION 3,604
UNLESS IT IN ADVANCE CLEARLY DISCLOSES TO THE PERSON OWNING,
OCCUPYING, CONTROLLING, OR USING THE LOAD CENTER THAT THE PERSON 3,606
WILL BE ENROLLED AUTOMATICALLY IN THE AGGREGATION PROGRAM AND 3,607
WILL REMAIN SO ENROLLED UNLESS THE PERSON AFFIRMATIVELY ELECTS BY 3,608
A STATED PROCEDURE NOT TO BE SO ENROLLED. THE DISCLOSURE SHALL 3,609
STATE PROMINENTLY THE RATES, CHARGES, AND OTHER TERMS AND 3,610
CONDITIONS OF ENROLLMENT. THE STATED PROCEDURE SHALL ALLOW ANY 3,611
PERSON ENROLLED IN THE AGGREGATION PROGRAM THE OPPORTUNITY TO OPT 3,612
OUT OF THE PROGRAM EVERY TWO YEARS, WITHOUT PAYING A SWITCHING 3,613
87
FEE. ANY SUCH PERSON THAT OPTS OUT OF THE AGGREGATION PROGRAM 3,615
PURSUANT TO THE STATED PROCEDURE SHALL DEFAULT TO THE STANDARD 3,616
SERVICE OFFER PROVIDED UNDER DIVISION (A) OF SECTION 4928.14 OR 3,617
DIVISION (D) OF SECTION 4928.35 OF THE REVISED CODE UNTIL THE 3,618
PERSON CHOOSES AN ALTERNATIVE SUPPLIER.
(E)(1) WITH RESPECT TO A GOVERNMENTAL AGGREGATION FOR A 3,620
MUNICIPAL CORPORATION THAT IS AUTHORIZED PURSUANT TO DIVISION (A) 3,621
TO (D) OF THIS SECTION, RESOLUTIONS MAY BE PROPOSED BY INITIATIVE 3,623
OR REFERENDUM PETITIONS IN ACCORDANCE WITH SECTIONS 731.28 TO 3,624
731.41 OF THE REVISED CODE. 3,625
(2) WITH RESPECT TO A GOVERNMENTAL AGGREGATION FOR A 3,627
TOWNSHIP OR THE UNINCORPORATED AREA OF A COUNTY, WHICH 3,628
AGGREGATION IS AUTHORIZED PURSUANT TO DIVISION (A) TO (D) OF THIS 3,629
SECTION, RESOLUTIONS MAY BE PROPOSED BY INITIATIVE OR REFERENDUM 3,631
PETITIONS IN ACCORDANCE WITH SECTIONS 731.28 TO 731.40 OF THE 3,632
REVISED CODE, EXCEPT THAT: 3,633
(a) THE PETITIONS SHALL BE FILED, RESPECTIVELY, WITH THE 3,635
TOWNSHIP CLERK OR THE BOARD OF COUNTY COMMISSIONERS, WHO SHALL 3,636
PERFORM THOSE DUTIES IMPOSED UNDER THOSE SECTIONS UPON THE CITY 3,638
AUDITOR OR VILLAGE CLERK.
(b) THE PETITIONS SHALL CONTAIN THE SIGNATURES OF NOT LESS 3,640
THAN TEN PER CENT OF THE TOTAL NUMBER OF ELECTORS IN, 3,641
RESPECTIVELY, THE TOWNSHIP OR THE UNINCORPORATED AREA OF THE 3,643
COUNTY WHO VOTED FOR THE OFFICE OF GOVERNOR AT THE PRECEDING 3,644
GENERAL ELECTION FOR THAT OFFICE IN THAT AREA.
(F) A GOVERNMENTAL AGGREGATOR UNDER DIVISION (A) OF THIS 3,646
SECTION IS NOT A PUBLIC UTILITY ENGAGING IN THE WHOLESALE 3,648
PURCHASE AND RESALE OF ELECTRICITY, AND PROVISION OF THE 3,649
AGGREGATED SERVICE IS NOT A WHOLESALE UTILITY TRANSACTION. A 3,651
GOVERNMENTAL AGGREGATOR SHALL BE SUBJECT TO SUPERVISION AND 3,652
REGULATION BY THE PUBLIC UTILITIES COMMISSION ONLY TO THE EXTENT 3,653
OF ANY COMPETITIVE RETAIL ELECTRIC SERVICE IT PROVIDES AND 3,654
COMMISSION AUTHORITY UNDER THIS CHAPTER.
(G) THIS SECTION DOES NOT APPLY IN THE CASE OF A MUNICIPAL 3,656
88
CORPORATION THAT SUPPLIES SUCH AGGREGATED SERVICE TO ELECTRIC 3,657
LOAD CENTERS TO WHICH ITS MUNICIPAL ELECTRIC UTILITY ALSO 3,658
SUPPLIES A NONCOMPETITIVE RETAIL ELECTRIC SERVICE THROUGH 3,659
TRANSMISSION OR DISTRIBUTION FACILITIES THE UTILITY SINGLY OR 3,660
JOINTLY OWNS OR OPERATES. 3,661
Sec. 4928.31. (A) NOT LATER THAN NINETY DAYS AFTER THE 3,663
EFFECTIVE DATE OF THIS SECTION, AN ELECTRIC UTILITY SUPPLYING 3,664
RETAIL ELECTRIC SERVICE IN THIS STATE ON THAT DATE SHALL FILE 3,666
WITH THE PUBLIC UTILITIES COMMISSION A PLAN FOR THE UTILITY'S 3,667
PROVISION OF RETAIL ELECTRIC SERVICE IN THIS STATE DURING THE 3,668
MARKET DEVELOPMENT PERIOD. THIS TRANSITION PLAN SHALL BE IN SUCH 3,669
FORM AS THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,670
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE AND SHALL 3,671
INCLUDE ALL OF THE FOLLOWING:
(1) A RATE UNBUNDLING PLAN THAT SPECIFIES, CONSISTENT WITH 3,673
DIVISIONS (A)(1) TO (7) OF SECTION 4928.34 OF THE REVISED CODE 3,674
AND ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF 3,675
SECTION 4928.06 OF THE REVISED CODE, THE UNBUNDLED COMPONENTS FOR 3,676
ELECTRIC GENERATION, TRANSMISSION, AND DISTRIBUTION SERVICE AND 3,677
SUCH OTHER UNBUNDLED SERVICE COMPONENTS AS THE COMMISSION 3,678
REQUIRES, TO BE CHARGED BY THE UTILITY BEGINNING ON THE STARTING 3,679
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE AND THAT INCLUDES 3,680
INFORMATION THE COMMISSION REQUIRES TO FIX AND DETERMINE THOSE 3,681
COMPONENTS;
(2) A CORPORATE SEPARATION PLAN CONSISTENT WITH SECTION 3,683
4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,684
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,686
CODE;
(3) SUCH PLAN OR PLANS AS THE COMMISSION REQUIRES TO 3,688
ADDRESS OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,689
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,690
SERVICE CONSISTENT WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,691
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE; 3,692
(4) AN EMPLOYEE ASSISTANCE PLAN FOR PROVIDING SEVERANCE, 3,694
89
RETRAINING, EARLY RETIREMENT, RETENTION, OUTPLACEMENT, AND OTHER 3,696
ASSISTANCE FOR THE UTILITY'S EMPLOYEES WHOSE EMPLOYMENT IS 3,697
AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING UNDER THIS CHAPTER; 3,698
(5) A CONSUMER EDUCATION PLAN CONSISTENT WITH SECTION 3,700
4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,701
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,702
CODE.
A TRANSITION PLAN UNDER THIS SECTION MAY INCLUDE TARIFF 3,704
TERMS AND CONDITIONS TO ADDRESS REASONABLE REQUIREMENTS FOR 3,705
CHANGING SUPPLIERS, LENGTH OF COMMITMENT BY A CUSTOMER FOR 3,706
SERVICE, AND SUCH OTHER MATTERS AS ARE NECESSARY TO ACCOMMODATE 3,707
ELECTRIC RESTRUCTURING. ADDITIONALLY, A TRANSITION PLAN UNDER 3,708
THIS SECTION MAY INCLUDE AN APPLICATION FOR THE OPPORTUNITY TO 3,709
RECEIVE TRANSITION REVENUES AS AUTHORIZED UNDER SECTIONS 4928.31 3,710
TO 4928.40 OF THE REVISED CODE, WHICH APPLICATION SHALL BE 3,711
CONSISTENT WITH THOSE SECTIONS AND ANY RULES ADOPTED BY THE 3,713
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,714
CODE. THE TRANSITION PLAN ALSO MAY INCLUDE A PLAN FOR THE 3,715
INDEPENDENT OPERATION OF THE UTILITY'S TRANSMISSION FACILITIES 3,716
CONSISTENT WITH SECTION 4928.12 OF THE REVISED CODE, DIVISION 3,717
(A)(13) OF SECTION 4928.34 OF THE REVISED CODE, AND ANY RULES
ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 3,718
OF THE REVISED CODE.
THE COMMISSION MAY REJECT AND REQUIRE REFILING, IN WHOLE OR 3,720
IN PART, OF ANY SUBSTANTIALLY INADEQUATE TRANSITION PLAN. 3,721
(B) THE ELECTRIC UTILITY SHALL PROVIDE PUBLIC NOTICE OF 3,723
ITS FILING UNDER DIVISION (A) OF THIS SECTION, IN A FORM AND 3,724
MANNER THAT THE COMMISSION SHALL PRESCRIBE BY RULE ADOPTED UNDER 3,725
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. HOWEVER, 3,726
THE ADOPTION OF RULES REGARDING THE PUBLIC NOTICE UNDER THIS 3,727
DIVISION, REGARDING THE FORM OF THE TRANSITION PLAN UNDER 3,728
DIVISION (A) OF THIS SECTION, AND REGARDING PROCEDURES FOR 3,729
EXPEDITED DISCOVERY UNDER DIVISION (A) OF SECTION 4928.32 OF THE 3,730
REVISED CODE ARE NOT SUBJECT TO DIVISION (D) OF SECTION 111.15 OF 3,731
90
THE REVISED CODE.
Sec. 4928.32. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,733
ESTABLISH REASONABLE PROCEDURES FOR EXPEDITED DISCOVERY IN ANY 3,734
PROCEEDING INITIATED TO CONSIDER A TRANSITION PLAN FILED UNDER 3,736
SECTION 4928.31 OF THE REVISED CODE.
(B) NOT LATER THAN FORTY-FIVE DAYS AFTER THE DATE ON WHICH 3,738
AN ELECTRIC UTILITY FILES A TRANSITION PLAN UNDER SECTION 4928.31 3,739
OF THE REVISED CODE, ANY PERSON HAVING A REAL AND SUBSTANTIAL 3,740
INTEREST IN THE TRANSITION PLAN MAY FILE WITH THE COMMISSION 3,741
PRELIMINARY OBJECTIONS TO THE TRANSITION PLAN, WHICH SHALL 3,742
IDENTIFY WITH SPECIFICITY ISSUES PERTAINING TO ANY ASPECT OF THE 3,743
TRANSITION PLAN, AND ANY SUCH PERSON MAY PROPOSE SPECIFIC 3,744
RESPONSES TO THOSE ISSUES. THE COMMISSION SHALL ADDRESS THOSE 3,745
OBJECTIONS AND RESPONSES IN ITS FINAL ORDER. 3,746
IN ADDITION, NOT LATER THAN NINETY DAYS AFTER THE PLAN'S 3,748
FILING, THE COMMISSION STAFF SHALL FILE WITH THE COMMISSION A 3,750
REPORT OF ITS RECOMMENDATIONS WITH RESPECT TO THE PLAN. PRIOR TO 3,751
COMMISSION APPROVAL OF THE PLAN, THE COMMISSION SHALL AFFORD A 3,752
HEARING UPON THOSE ASPECTS OF THE PLAN THAT THE COMMISSION 3,753
DETERMINES REASONABLY REQUIRE A HEARING.
(C) THE COMMISSION SHALL MAINTAIN A COMPLETE RECORD OF ALL 3,755
PROCEEDINGS RELATIVE TO A TRANSITION PLAN FILED UNDER SECTION 3,756
4928.31 OF THE REVISED CODE AND SHALL ISSUE AND FILE WITH THE 3,757
RECORD OF THE CASE FINDINGS OF FACT AND WRITTEN OPINIONS SETTING 3,758
FORTH THE REASONS FOR ANY MODIFICATION TO OR ITS APPROVAL OF A 3,759
TRANSITION PLAN. 3,760
Sec. 4928.33. (A) NOT LATER THAN TWO HUNDRED SEVENTY-FIVE 3,762
DAYS AFTER THE DATE AN ELECTRIC UTILITY FILES A TRANSITION PLAN 3,763
UNDER SECTION 4928.31 OF THE REVISED CODE, BUT, IN ANY EVENT, NOT 3,764
LATER THAN OCTOBER 31, 2000, THE PUBLIC UTILITIES COMMISSION 3,766
SHALL ISSUE A FINAL ORDER APPROVING THE TRANSITION PLAN AS FILED 3,767
UNDER SECTION 4928.31 OF THE REVISED CODE OR AN ORDER MODIFYING 3,768
AND APPROVING THAT PLAN. THE ORDER IS SUBJECT TO SECTION 4903.15 3,769
OF THE REVISED CODE AND IS SUBJECT TO REVIEW AND APPEAL UNDER 3,770
91
CHAPTER 4903. OF THE REVISED CODE.
(B) IF THE COMMISSION FAILS TO ISSUE, BY OCTOBER 31, 2000, 3,773
A FINAL ORDER APPROVING A TRANSITION PLAN, OR SUCH A FINAL ORDER
HAS BEEN ENJOINED IN WHOLE OR IN PART PENDING APPEAL TO A COURT, 3,774
THE COMMISSION SHALL ISSUE AN INTERIM ORDER PRESCRIBING A 3,776
TRANSITION PLAN, TO HAVE EFFECT ON AN INTERIM BASIS ONLY, AND 3,777
CONTAINING THE PLAN COMPONENTS REQUIRED BY DIVISION (A) OF 3,778
SECTION 4928.31 OF THE REVISED CODE AND PROVIDING FOR THE 3,780
OPPORTUNITY FOR TRANSITION REVENUE RECEIPT IF SUCH AN APPLICATION
WERE INCLUDED IN THE PLAN FILED BY THE UTILITY UNDER THAT 3,781
SECTION. THE INTERIM ORDER IS SUBJECT TO SECTION 4903.15 OF THE 3,782
REVISED CODE BUT IS NOT SUBJECT TO REVIEW AND APPEAL UNDER 3,783
CHAPTER 4903. OF THE REVISED CODE. 3,784
AN INTERIM PLAN PRESCRIBED UNDER THE INTERIM ORDER SHALL BE 3,786
EFFECTIVE FOR THE ELECTRIC UTILITY BEGINNING ON THE STARTING DATE 3,787
OF COMPETITIVE RETAIL ELECTRIC SERVICE AND SHALL CONTINUE IN 3,788
EFFECT UNTIL SUCH TIME AS ANY OTHER REPLACEMENT TRANSITION PLAN 3,789
TAKES EFFECT PURSUANT TO A FINAL COMMISSION ORDER OR RESOLUTION 3,790
OF AN APPEAL. ANY INTERIM PLAN SO PRESCRIBED SHALL COMPLY WITH 3,791
THE APPLICABLE PROVISIONS OF SECTION 4928.34 OF THE REVISED CODE. 3,793
A FINAL COMMISSION ORDER SHALL PROVIDE FOR A RECONCILIATION OF
THOSE AMOUNTS DETERMINED IN THE FINAL ORDER RELATIVE TO DIVISION 3,794
(A) OF SECTION 4928.31 OF THE REVISED CODE AS COMPARED TO THE 3,795
INTERIM AMOUNTS AS DETERMINED UNDER THIS DIVISION. 3,796
(C) NO ELECTRIC UTILITY REQUIRED TO FILE A TRANSITION PLAN 3,798
UNDER SECTION 4928.31 OF THE REVISED CODE SHALL FAIL TO IMPLEMENT 3,799
A TRANSITION PLAN APPROVED OR PRESCRIBED FOR THE UTILITY BY A 3,800
COMMISSION ORDER ISSUED UNDER DIVISION (A) OR (B) OF THIS 3,801
SECTION. NO ELECTRIC UTILITY SHALL PROVIDE RETAIL ELECTRIC 3,802
SERVICE IN THIS STATE DURING THE MARKET DEVELOPMENT PERIOD EXCEPT 3,803
PURSUANT TO SUCH AN APPROVED OR PRESCRIBED TRANSITION PLAN. 3,804
Sec. 4928.34. (A) THE PUBLIC UTILITIES COMMISSION SHALL 3,806
NOT APPROVE OR PRESCRIBE A TRANSITION PLAN UNDER DIVISION (A) OR 3,807
(B) OF SECTION 4928.33 OF THE REVISED CODE UNLESS THE COMMISSION 3,809
92
FIRST MAKES ALL OF THE FOLLOWING DETERMINATIONS: 3,810
(1) THE UNBUNDLED COMPONENTS FOR THE ELECTRIC TRANSMISSION 3,812
COMPONENT OF RETAIL ELECTRIC SERVICE, AS SPECIFIED IN THE 3,813
UTILITY'S RATE UNBUNDLING PLAN REQUIRED BY DIVISION (A)(1) OF 3,815
SECTION 4928.31 OF THE REVISED CODE, EQUAL THE TARIFF RATES 3,816
DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION THAT ARE
IN EFFECT ON THE DATE OF THE APPROVAL OF THE TRANSITION PLAN 3,817
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AS EACH 3,818
SUCH RATE IS DETERMINED APPLICABLE TO EACH PARTICULAR CUSTOMER 3,820
CLASS AND RATE SCHEDULE BY THE COMMISSION. THE UNBUNDLED 3,821
TRANSMISSION COMPONENT SHALL INCLUDE A SLIDING SCALE OF CHARGES 3,822
UNDER DIVISION (B) OF SECTION 4905.31 OF THE REVISED CODE TO 3,824
ENSURE THAT REFUNDS DETERMINED OR APPROVED BY THE FEDERAL ENERGY 3,825
REGULATORY COMMISSION ARE FLOWED THROUGH TO RETAIL ELECTRIC 3,827
CUSTOMERS.
(2) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,829
DISTRIBUTION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE 3,830
DIFFERENCE BETWEEN THE COSTS ATTRIBUTABLE TO THE UTILITY'S 3,831
TRANSMISSION AND DISTRIBUTION RATES AND CHARGES UNDER ITS 3,832
SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE EFFECTIVE DATE OF 3,833
THIS SECTION, BASED UPON THE RECORD IN THE MOST RECENT RATE 3,834
PROCEEDING OF THE UTILITY FOR WHICH THE UTILITY'S SCHEDULE WAS
ESTABLISHED, AND THE TARIFF RATES FOR ELECTRIC TRANSMISSION 3,836
SERVICE DETERMINED BY THE FEDERAL ENERGY REGULATORY COMMISSION AS 3,837
DESCRIBED IN DIVISION (A)(1) OF THIS SECTION. 3,838
(3) ALL OTHER UNBUNDLED COMPONENTS REQUIRED BY THE 3,840
COMMISSION IN THE RATE UNBUNDLING PLAN EQUAL THE COSTS 3,841
ATTRIBUTABLE TO THE PARTICULAR SERVICE AS REFLECTED IN THE 3,842
UTILITY'S SCHEDULE OF RATES AND CHARGES IN EFFECT ON THE 3,843
EFFECTIVE DATE OF THIS SECTION.
(4) THE UNBUNDLED COMPONENTS FOR RETAIL ELECTRIC 3,845
GENERATION SERVICE IN THE RATE UNBUNDLING PLAN EQUAL THE RESIDUAL 3,846
AMOUNT REMAINING AFTER THE DETERMINATION OF THE TRANSMISSION, 3,847
DISTRIBUTION, AND OTHER UNBUNDLED COMPONENTS, AND AFTER ANY 3,848
93
ADJUSTMENTS NECESSARY TO REFLECT THE EFFECTS OF THE AMENDMENT OF 3,849
SECTION 5727.111 OF THE REVISED CODE BY SUB. S. B. NO. 3 OF THE 3,853
123rd GENERAL ASSEMBLY. 3,854
(5) ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN 3,856
HAVE BEEN ADJUSTED TO REFLECT ANY BASE RATE REDUCTIONS ON FILE 3,857
WITH THE COMMISSION AND AS SCHEDULED TO BE IN EFFECT BY DECEMBER 3,858
31, 2005, UNDER RATE SETTLEMENTS IN EFFECT ON THE EFFECTIVE DATE 3,860
OF THIS SECTION. HOWEVER, ALL EARNINGS OBLIGATIONS, RESTRICTIONS, 3,862
OR CAPS IMPOSED ON AN ELECTRIC UTILITY IN A COMMISSION ORDER 3,864
PRIOR TO THE EFFECTIVE DATE OF THIS SECTION ARE VOID. 3,865
(6) SUBJECT TO DIVISION (A)(5) OF THIS SECTION, THE TOTAL 3,867
OF ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN ARE 3,869
CAPPED AND SHALL EQUAL DURING THE MARKET DEVELOPMENT PERIOD,
EXCEPT AS SPECIFICALLY PROVIDED IN THIS CHAPTER, THE TOTAL OF ALL 3,871
RATES AND CHARGES IN EFFECT UNDER THE APPLICABLE BUNDLED SCHEDULE 3,872
OF THE ELECTRIC UTILITY PURSUANT TO SECTION 4905.30 OF THE 3,873
REVISED CODE IN EFFECT ON THE DAY BEFORE THE EFFECTIVE DATE OF 3,875
THIS SECTION, INCLUDING THE TRANSITION CHARGE DETERMINED UNDER 3,876
SECTION 4928.40 OF THE REVISED CODE, ADJUSTED FOR ANY CHANGES IN
THE TAXATION OF ELECTRIC UTILITIES AND RETAIL ELECTRIC SERVICE 3,877
UNDER SUB. S.B. NO. 3 OF THE 123rd GENERAL ASSEMBLY, THE 3,880
UNIVERSAL SERVICE RIDER AUTHORIZED BY SECTION 4928.51 OF THE 3,881
REVISED CODE, AND THE TEMPORARY RIDER AUTHORIZED BY SECTION 3,882
4928.61 OF THE REVISED CODE. FOR THE PURPOSE OF THIS DIVISION, 3,884
THE RATE CAP APPLICABLE TO A CUSTOMER RECEIVING ELECTRIC SERVICE 3,885
PURSUANT TO AN ARRANGEMENT APPROVED BY THE COMMISSION UNDER 3,886
SECTION 4905.31 OF THE REVISED CODE IS, FOR THE TERM OF THE 3,887
ARRANGEMENT, THE TOTAL OF ALL RATES AND CHARGES IN EFFECT UNDER 3,888
THE ARRANGEMENT. FOR ANY RATE SCHEDULE FILED PURSUANT TO SECTION 3,890
4905.30 OF THE REVISED CODE OR ANY ARRANGEMENT SUBJECT TO 3,891
APPROVAL PURSUANT TO SECTION 4905.31 OF THE REVISED CODE, THE 3,892
INITIAL TAX-RELATED ADJUSTMENT TO THE RATE CAP REQUIRED BY THIS 3,893
DIVISION SHALL BE EQUAL TO THE RATE OF TAXATION SPECIFIED IN 3,894
SECTION 5727.81 OF THE REVISED CODE AND APPLICABLE TO THE 3,896
94
SCHEDULE OR ARRANGEMENT. TO THE EXTENT SUCH TOTAL ANNUAL AMOUNT 3,897
OF THE TAX-RELATED ADJUSTMENT IS GREATER THAN OR LESS THAN THE 3,898
COMPARABLE AMOUNT OF THE TOTAL ANNUAL TAX REDUCTION EXPERIENCED 3,899
BY THE ELECTRIC UTILITY AS A RESULT OF THE PROVISIONS OF SUB. 3,900
S.B. NO. 3 OF THE 123RD GENERAL ASSEMBLY, SUCH DIFFERENCE SHALL 3,902
BE ADDRESSED BY THE COMMISSION THROUGH ACCOUNTING PROCEDURES,
REFUNDS, OR AN ANNUAL SURCHARGE OR CREDIT TO CUSTOMERS, OR 3,904
THROUGH OTHER APPROPRIATE MEANS, TO AVOID PLACING THE FINANCIAL
RESPONSIBILITY FOR THE DIFFERENCE UPON THE ELECTRIC UTILITY OR 3,905
ITS SHAREHOLDERS. ANY ADJUSTMENTS IN THE RATE OF TAXATION 3,906
SPECIFIED IN 5727.81 OF THE REVISED CODE SECTION SHALL NOT OCCUR 3,907
WITHOUT A CORRESPONDING ADJUSTMENT TO THE RATE CAP FOR EACH SUCH 3,908
RATE SCHEDULE OR ARRANGEMENT. THE DEPARTMENT OF TAXATION SHALL
ADVISE THE COMMISSION AND SELF-ASSESSORS UNDER SECTION 5727.81 OF 3,909
THE REVISED CODE PRIOR TO THE EFFECTIVE DATE OF ANY CHANGE IN THE 3,910
RATE OF TAXATION SPECIFIED UNDER THAT SECTION, AND THE COMMISSION 3,911
SHALL MODIFY THE RATE CAP TO REFLECT THAT ADJUSTMENT SO THAT THE 3,912
RATE CAP ADJUSTMENT IS EFFECTIVE AS OF THE EFFECTIVE DATE OF THE
CHANGE IN THE RATE OF TAXATION. THIS DIVISION SHALL BE APPLIED, 3,913
TO THE EXTENT POSSIBLE, TO ELIMINATE ANY INCREASE IN THE PRICE OF 3,914
ELECTRICITY FOR CUSTOMERS THAT OTHERWISE MAY OCCUR AS A RESULT OF 3,915
ESTABLISHING THE TAXES CONTEMPLATED IN SECTION 5727.81 OF THE 3,917
REVISED CODE. FOR ANY RATE SCHEDULE FILED PURSUANT TO SECTION 3,919
4905.30 OF THE REVISED CODE OR ANY ARRANGEMENT SUBJECT TO 3,920
APPROVAL PURSUANT TO SECTION 4905.31 OF THE REVISED CODE, THE 3,921
INITIAL TAX-RELATED ADJUSTMENT TO THE RATE CAP REQUIRED BY THIS 3,922
DIVISION SHALL BE EQUAL TO THE RATE OF TAXATION SPECIFIED IN 3,923
SECTION 5727.81 OF THE REVISED CODE AND APPLICABLE TO THE 3,925
SCHEDULE OR ARRANGEMENT. TO THE EXTENT SUCH TOTAL ANNUAL AMOUNT 3,926
OF THE TAX-RELATED ADJUSTMENT IS GREATER THAN OR LESS THAN THE 3,927
COMPARABLE AMOUNT OF THE TOTAL ANNUAL TAX REDUCTION EXPERIENCED 3,928
BY THE ELECTRIC UTILITY AS A RESULT OF THE PROVISIONS OF SUB. 3,929
S.B. NO. 3 OF THE 123RD GENERAL ASSEMBLY, SUCH DIFFERENCE SHALL 3,931
BE ADDRESSED BY THE COMMISSION THROUGH ACCOUNTING PROCEDURES,
95
REFUNDS, OR AN ANNUAL SURCHARGE OR CREDIT TO CUSTOMERS, OR 3,933
THROUGH OTHER APPROPRIATE MEANS, TO AVOID PLACING THE FINANCIAL
RESPONSIBILITY FOR THE DIFFERENCE UPON THE ELECTRIC UTILITY OR 3,934
ITS SHAREHOLDERS. ANY ADJUSTMENTS IN THE RATE OF TAXATION 3,935
SPECIFIED IN 5727.81 OF THE REVISED CODE SECTION SHALL NOT OCCUR 3,936
WITHOUT A CORRESPONDING ADJUSTMENT TO THE RATE CAP FOR EACH SUCH 3,937
RATE SCHEDULE OR ARRANGEMENT. THE DEPARTMENT OF TAXATION SHALL
ADVISE THE COMMISSION AND SELF-ASSESSORS UNDER SECTION 5727.81 OF 3,938
THE REVISED CODE PRIOR TO THE EFFECTIVE DATE OF ANY CHANGE IN THE 3,939
RATE OF TAXATION SPECIFIED UNDER THAT SECTION, AND THE COMMISSION 3,940
SHALL MODIFY THE RATE CAP TO REFLECT THAT ADJUSTMENT SO THAT THE 3,941
RATE CAP ADJUSTMENT IS EFFECTIVE AS OF THE EFFECTIVE DATE OF THE
CHANGE IN THE RATE OF TAXATION. THIS DIVISION SHALL BE APPLIED, 3,942
TO THE EXTENT POSSIBLE, TO ELIMINATE ANY INCREASE IN THE PRICE OF 3,943
ELECTRICITY FOR CUSTOMERS THAT OTHERWISE MAY OCCUR AS A RESULT OF 3,944
ESTABLISHING THE TAXES CONTEMPLATED IN SECTION 5727.81 OF THE 3,946
REVISED CODE.
(7) THE RATE UNBUNDLING PLAN COMPLIES WITH ANY RULES 3,948
ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 3,949
OF THE REVISED CODE.
(8) THE CORPORATE SEPARATION PLAN REQUIRED BY DIVISION 3,951
(A)(2) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,952
SECTION 4928.17 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,953
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,955
CODE.
(9) ANY PLAN OR PLANS THE COMMISSION REQUIRES TO ADDRESS 3,957
OPERATIONAL SUPPORT SYSTEMS AND ANY OTHER TECHNICAL 3,958
IMPLEMENTATION ISSUES PERTAINING TO COMPETITIVE RETAIL ELECTRIC 3,959
SERVICE COMPLY WITH ANY RULES ADOPTED BY THE COMMISSION UNDER 3,960
DIVISION (A) OF SECTION 4928.06 OF THE REVISED CODE. 3,961
(10) THE EMPLOYEE ASSISTANCE PLAN REQUIRED BY DIVISION 3,963
(A)(4) OF SECTION 4928.31 OF THE REVISED CODE SUFFICIENTLY 3,964
PROVIDES SEVERANCE, RETRAINING, EARLY RETIREMENT, RETENTION, 3,965
OUTPLACEMENT, AND OTHER ASSISTANCE FOR THE UTILITY'S EMPLOYEES 3,966
96
WHOSE EMPLOYMENT IS AFFECTED BY ELECTRIC INDUSTRY RESTRUCTURING
UNDER THIS CHAPTER. 3,968
(11) THE CONSUMER EDUCATION PLAN REQUIRED UNDER DIVISION 3,970
(A)(5) OF SECTION 4928.31 OF THE REVISED CODE COMPLIES WITH 3,971
SECTION 4928.42 OF THE REVISED CODE AND ANY RULES ADOPTED BY THE 3,972
COMMISSION UNDER DIVISION (A) OF SECTION 4928.06 OF THE REVISED 3,973
CODE.
(12) THE TRANSITION REVENUES FOR WHICH AN ELECTRIC UTILITY 3,975
IS AUTHORIZED A REVENUE OPPORTUNITY UNDER SECTIONS 4928.31 TO 3,977
4928.40 OF THE REVISED CODE ARE THE ALLOWABLE TRANSITION COSTS OF 3,978
THE UTILITY AS SUCH COSTS ARE DETERMINED BY THE COMMISSION 3,979
PURSUANT TO SECTION 4928.39 OF THE REVISED CODE, AND THE 3,980
TRANSITION CHARGES FOR THE CUSTOMER CLASSES AND RATE SCHEDULES OF 3,981
THE UTILITY ARE THE CHARGES DETERMINED PURSUANT TO SECTION 3,982
4928.40 OF THE REVISED CODE. 3,983
(13) ANY INDEPENDENT TRANSMISSION PLAN INCLUDED IN THE 3,986
TRANSITION PLAN FILED UNDER SECTION 4928.31 OF THE REVISED CODE
REASONABLY COMPLIES WITH SECTION 4928.12 OF THE REVISED CODE AND 3,987
ANY RULES ADOPTED BY THE COMMISSION UNDER DIVISION (A) OF SECTION 3,989
4928.06 OF THE REVISED CODE, UNLESS THE COMMISSION, FOR GOOD 3,990
CAUSE SHOWN, AUTHORIZES THE UTILITY TO DEFER COMPLIANCE UNTIL AN 3,991
ORDER IS ISSUED UNDER DIVISION (G) OF SECTION 4928.35 OF THE 3,992
REVISED CODE.
(14) THE UTILITY IS IN COMPLIANCE WITH SECTIONS 4928.01 TO 3,994
4928.11 OF THE REVISED CODE AND ANY RULES OR ORDERS OF THE 3,995
COMMISSION ADOPTED OR ISSUED UNDER THOSE SECTIONS. 3,997
(15) ALL UNBUNDLED COMPONENTS IN THE RATE UNBUNDLING PLAN 3,999
HAVE BEEN ADJUSTED TO REFLECT THE ELIMINATION OF THE TAX ON GROSS 4,000
RECEIPTS IMPOSED BY SECTION 5727.30 OF THE REVISED CODE. 4,001
IN ADDITION, A TRANSITION PLAN APPROVED BY THE COMMISSION 4,003
UNDER SECTION 4928.33 OF THE REVISED CODE BUT NOT CONTAINING AN 4,004
APPROVED INDEPENDENT TRANSMISSION PLAN SHALL CONTAIN THE EXPRESS 4,005
CONDITIONS THAT THE UTILITY WILL COMPLY WITH AN ORDER ISSUED 4,006
UNDER DIVISION (G) OF SECTION 4928.35 OF THE REVISED CODE. 4,007
97
(B) SUBJECT TO DIVISION (E) OF SECTION 4928.17 OF THE 4,010
REVISED CODE, IF THE COMMISSION FINDS THAT ANY PART OF THE
TRANSITION PLAN WOULD CONSTITUTE AN ABANDONMENT UNDER SECTIONS 4,012
4905.20 AND 4905.21 OF THE REVISED CODE, THE COMMISSION SHALL NOT 4,013
APPROVE THAT PART OF THE TRANSITION PLAN UNLESS IT MAKES THE 4,014
FINDING REQUIRED FOR APPROVAL OF AN ABANDONMENT APPLICATION UNDER 4,015
SECTION 4905.21 OF THE REVISED CODE. SECTIONS 4905.20 AND 4,017
4905.21 OF THE REVISED CODE OTHERWISE SHALL NOT APPLY TO A 4,019
TRANSITION PLAN UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED 4,020
CODE.
Sec. 4928.35. (A) UPON APPROVAL OF ITS TRANSITION PLAN 4,022
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, AN 4,023
ELECTRIC UTILITY SHALL FILE IN ACCORDANCE WITH SECTION 4905.30 OF 4,024
THE REVISED CODE SCHEDULES CONTAINING THE UNBUNDLED RATE 4,026
COMPONENTS SET IN THE APPROVED PLAN IN ACCORDANCE WITH SECTION 4,027
4928.34 OF THE REVISED CODE. THE SCHEDULES SHALL BE IN EFFECT
FOR THE DURATION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD, 4,028
SHALL BE SUBJECT TO THE CAP SPECIFIED IN DIVISION (A)(6) OF 4,029
SECTION 4928.34 OF THE REVISED CODE, AND SHALL NOT BE ADJUSTED 4,030
DURING THAT PERIOD BY THE PUBLIC UTILITIES COMMISSION EXCEPT AS 4,031
OTHERWISE AUTHORIZED BY DIVISION (B) OF THIS SECTION OR AS 4,032
OTHERWISE AUTHORIZED BY FEDERAL LAW OR EXCEPT TO REFLECT ANY 4,033
CHANGE IN TAX LAW OR TAX REGULATION THAT HAS A MATERIAL EFFECT ON 4,034
THE ELECTRIC UTILITY.
(B) EFFORTS SHALL BE MADE TO REACH AGREEMENTS WITH 4,036
ELECTRIC UTILITIES IN MATTERS OF LITIGATION REGARDING PROPERTY 4,037
VALUATION ISSUES. IRRESPECTIVE OF THOSE EFFORTS, THE UNBUNDLED 4,038
COMPONENTS FOR AN ELECTRIC UTILITY'S RETAIL ELECTRIC GENERATION 4,039
SERVICE AND DISTRIBUTION SERVICE, AS PROVIDED IN DIVISION (A) OF 4,040
THIS SECTION, ARE NOT SUBJECT TO ADJUSTMENT FOR THE UTILITY'S 4,041
MARKET DEVELOPMENT PERIOD, EXCEPT THAT THE COMMISSION SHALL ORDER 4,042
AN EQUITABLE REDUCTION IN THOSE COMPONENTS FOR ALL CUSTOMER 4,043
CLASSES TO REFLECT ANY REFUND A UTILITY RECEIVES AS A RESULT OF 4,044
THE RESOLUTION OF UTILITY PERSONAL PROPERTY TAX VALUATION 4,045
98
LITIGATION THAT IS RESOLVED ON OR AFTER THE EFFECTIVE DATE OF 4,046
THIS SECTION AND NOT LATER THAN DECEMBER 31, 2005. IMMEDIATELY 4,047
UPON THE ISSUANCE OF THAT ORDER, THE ELECTRIC UTILITY SHALL FILE 4,048
REVISED RATE SCHEDULES UNDER SECTION 4909.18 OF THE REVISED CODE 4,049
TO EFFECT THE ORDER. 4,050
(C) THE SCHEDULE UNDER DIVISION (A) OF THIS SECTION 4,052
CONTAINING THE UNBUNDLED DISTRIBUTION COMPONENTS SHALL PROVIDE 4,054
THAT ELECTRIC DISTRIBUTION SERVICE UNDER THE SCHEDULE WILL BE 4,055
AVAILABLE TO ALL RETAIL ELECTRIC SERVICE CUSTOMERS IN THE 4,056
ELECTRIC UTILITY'S CERTIFIED TERRITORY AND THEIR SUPPLIERS ON A 4,057
NONDISCRIMINATORY AND COMPARABLE BASIS ON AND AFTER THE STARTING 4,058
DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. THE SCHEDULE ALSO 4,059
SHALL INCLUDE AN OBLIGATION TO BUILD DISTRIBUTION FACILITIES WHEN 4,060
NECESSARY TO PROVIDE ADEQUATE DISTRIBUTION SERVICE, PROVIDED THAT 4,061
A CUSTOMER REQUESTING THAT SERVICE MAY BE REQUIRED TO PAY ALL OR 4,062
PART OF THE REASONABLE INCREMENTAL COST OF THE NEW FACILITIES, IN 4,063
ACCORDANCE WITH RULES, POLICY, PRECEDENTS, OR ORDERS OF THE 4,064
COMMISSION.
(D) DURING THE MARKET DEVELOPMENT PERIOD, AN ELECTRIC 4,066
DISTRIBUTION UTILITY SHALL PROVIDE CONSUMERS ON A COMPARABLE AND 4,067
NONDISCRIMINATORY BASIS WITHIN ITS CERTIFIED TERRITORY A STANDARD 4,069
SERVICE OFFER OF ALL COMPETITIVE RETAIL ELECTRIC SERVICES
NECESSARY TO MAINTAIN ESSENTIAL ELECTRIC SERVICE TO CONSUMERS, 4,070
INCLUDING A FIRM SUPPLY OF ELECTRIC GENERATION SERVICE PRICED IN 4,071
ACCORDANCE WITH THE SCHEDULE CONTAINING THE UTILITY'S UNBUNDLED 4,072
GENERATION SERVICE COMPONENT. IMMEDIATELY UPON APPROVAL OF ITS 4,073
TRANSITION PLAN, THE UTILITY SHALL FILE THE STANDARD SERVICE 4,074
OFFER WITH THE COMMISSION UNDER SECTION 4909.18 OF THE REVISED 4,075
CODE. DURING THE MARKET DEVELOPMENT PERIOD, THE FAILURE OF A 4,076
SUPPLIER TO DELIVER RETAIL ELECTRIC GENERATION SERVICE SHALL 4,077
RESULT IN THE SUPPLIER'S CUSTOMERS, AFTER REASONABLE NOTICE, 4,078
DEFAULTING TO THE UTILITY'S STANDARD SERVICE OFFER FILED UNDER 4,079
THIS DIVISION UNTIL THE CUSTOMER CHOOSES AN ALTERNATIVE SUPPLIER. 4,080
A SUPPLIER IS DEEMED UNDER THIS SECTION TO HAVE FAILED TO DELIVER 4,081
99
SUCH SERVICE IF ANY OF THE CONDITIONS SPECIFIED IN DIVISIONS 4,082
(B)(1) TO (4) OF SECTION 4928.14 OF THE REVISED CODE IS MET. 4,083
(E) AN AMENDMENT OF A CORPORATE SEPARATION PLAN CONTAINED 4,085
IN A TRANSITION PLAN APPROVED BY THE COMMISSION UNDER SECTION 4,086
4928.33 OF THE REVISED CODE SHALL BE FILED AND APPROVED AS A 4,087
CORPORATE SEPARATION PLAN PURSUANT TO SECTION 4928.17 OF THE 4,088
REVISED CODE. 4,089
(F) ANY CHANGE TO AN ELECTRIC UTILITY'S OPPORTUNITY TO 4,091
RECEIVE TRANSITION REVENUES UNDER A TRANSITION PLAN APPROVED IN 4,092
ACCORDANCE WITH SECTION 4928.33 OF THE REVISED CODE SHALL BE 4,093
AUTHORIZED ONLY AS PROVIDED IN SECTIONS 4928.31 TO 4928.40 OF THE 4,094
REVISED CODE. 4,095
(G) THE COMMISSION, BY ORDER, SHALL REQUIRE EACH ELECTRIC 4,097
UTILITY WHOSE APPROVED TRANSITION PLAN DID NOT INCLUDE AN 4,098
INDEPENDENT TRANSMISSION PLAN AS DESCRIBED IN DIVISION (A)(13) OF 4,099
SECTION 4928.34 OF THE REVISED CODE TO BE A MEMBER OF, AND 4,100
TRANSFER CONTROL OF TRANSMISSION FACILITIES IT OWNS OR CONTROLS 4,101
IN THIS STATE TO, ONE OR MORE QUALIFYING TRANSMISSION ENTITIES, 4,102
AS DESCRIBED IN DIVISION (B) OF SECTION 4928.12 OF THE REVISED 4,103
CODE, THAT ARE PLANNED TO BE OPERATIONAL ON AND AFTER DECEMBER 4,104
31, 2003. HOWEVER, THE COMMISSION MAY EXTEND THAT DATE IF, FOR 4,106
REASONS BEYOND THE CONTROL OF THE UTILITY, A QUALIFYING 4,107
TRANSMISSION ENTITY IS NOT PLANNED TO BE OPERATIONAL ON THAT 4,108
DATE. THE COMMISSION'S ORDER MAY SPECIFY AN EARLIER DATE ON 4,109
WHICH THE TRANSMISSION ENTITY OR ENTITIES ARE PLANNED TO BE 4,110
OPERATIONAL IF THE COMMISSION CONSIDERS IT NECESSARY TO CARRY OUT 4,111
THE POLICY SPECIFIED IN SECTION 4928.02 OF THE REVISED CODE OR TO 4,113
ENCOURAGE EFFECTIVE COMPETITION IN RETAIL ELECTRIC SERVICE IN 4,114
THIS STATE.
UPON THE ISSUANCE OF THE ORDER, EACH SUCH UTILITY SHALL 4,116
FILE WITH THE COMMISSION A PLAN FOR SUCH INDEPENDENT OPERATION OF 4,117
THE UTILITY'S TRANSMISSION FACILITIES CONSISTENT WITH THIS 4,118
DIVISION. THE COMMISSION MAY REJECT AND REQUIRE REFILING OF ANY 4,119
SUBSTANTIALLY INADEQUATE PLAN SUBMITTED UNDER THIS DIVISION. 4,120
100
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, THE 4,122
COMMISSION SHALL APPROVE THE PLAN UPON A FINDING THAT THE PLAN 4,123
WILL RESULT IN THE UTILITY'S COMPLIANCE WITH THE ORDER, THIS 4,124
DIVISION, AND ANY RULES ADOPTED UNDER DIVISION (A) OF SECTION 4,125
4928.06 OF THE REVISED CODE. THE APPROVED INDEPENDENT 4,126
TRANSMISSION PLAN SHALL BE DEEMED A PART OF THE UTILITY'S 4,127
TRANSITION PLAN FOR PURPOSES OF SECTIONS 4928.31 TO 4928.40 OF 4,128
THE REVISED CODE.
Sec. 4928.36. THE PUBLIC UTILITIES COMMISSION HAS 4,130
JURISDICTION UNDER SECTION 4905.26 OF THE REVISED CODE, UPON 4,131
COMPLAINT BY ANY PERSON OR UPON COMPLAINT OR INITIATIVE OF THE 4,133
COMMISSION ON OR AFTER THE STARTING DATE OF COMPETITIVE RETAIL 4,134
ELECTRIC SERVICE, TO DETERMINE WHETHER AN ELECTRIC UTILITY HAS 4,135
FAILED TO IMPLEMENT, IN CONFORMANCE WITH AN ORDER UNDER SECTION 4,136
4928.33 OF THE REVISED CODE OR IN ONGOING COMPLIANCE WITH 4,138
APPLICABLE PROVISIONS OF THE POLICY SPECIFIED IN SECTION 4928.02
OF THE REVISED CODE, A TRANSITION PLAN APPROVED UNDER SECTION 4,139
4928.33 OF THE REVISED CODE. IF, AFTER REASONABLE NOTICE AND 4,141
OPPORTUNITY FOR HEARING AS PROVIDED IN SECTION 4905.26 OF THE 4,143
REVISED CODE, THE COMMISSION DETERMINES THAT THE UTILITY HAS 4,144
FAILED TO SO COMPLY, THE COMMISSION, IN ADDITION TO ANY OTHER 4,145
REMEDIES PROVIDED BY LAW, MAY USE THE REMEDIES SPECIFIED IN 4,146
DIVISIONS (C)(1) TO (3) AND (D)(1) AND (2) OF SECTION 4928.18 OF 4,147
THE REVISED CODE TO ENFORCE COMPLIANCE. 4,148
Sec. 4928.37. (A)(1) SECTIONS 4928.31 TO 4928.40 OF THE 4,150
REVISED CODE PROVIDE AN ELECTRIC UTILITY THE OPPORTUNITY TO 4,152
RECEIVE TRANSITION REVENUES THAT MAY ASSIST IT IN MAKING THE
TRANSITION TO A FULLY COMPETITIVE RETAIL ELECTRIC GENERATION 4,154
MARKET. AN ELECTRIC UTILITY FOR WHICH TRANSITION REVENUES ARE 4,155
APPROVED PURSUANT TO SECTIONS 4928.31 TO 4928.40 OF THE REVISED 4,156
CODE SHALL RECEIVE THOSE REVENUES THROUGH BOTH OF THE FOLLOWING 4,157
MECHANISMS BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,158
ELECTRIC SERVICE AND ENDING ON THE EXPIRATION DATE OF ITS MARKET 4,159
DEVELOPMENT PERIOD AS DETERMINED UNDER SECTION 4928.40 OF THE 4,160
101
REVISED CODE:
(a) PAYMENT OF UNBUNDLED RATES FOR RETAIL ELECTRIC 4,162
SERVICES BY EACH CUSTOMER THAT IS SUPPLIED RETAIL ELECTRIC 4,163
GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD BY THE 4,164
CUSTOMER'S ELECTRIC DISTRIBUTION UTILITY, WHICH RATES SHALL BE 4,165
SPECIFIED IN SCHEDULES FILED UNDER SECTION 4928.35 OF THE REVISED 4,166
CODE;
(b) PAYMENT OF A NONBYPASSABLE AND COMPETITIVELY NEUTRAL 4,168
TRANSITION CHARGE BY EACH CUSTOMER THAT IS SUPPLIED RETAIL 4,169
ELECTRIC GENERATION SERVICE DURING THE MARKET DEVELOPMENT PERIOD 4,170
BY AN ENTITY OTHER THAN THE CUSTOMER'S ELECTRIC DISTRIBUTION 4,171
UTILITY, AS SUCH TRANSITION CHARGE IS DETERMINED UNDER SECTION 4,172
4928.40 OF THE REVISED CODE. THE TRANSITION CHARGE SHALL BE 4,173
PAYABLE BY EACH SUCH RETAIL ELECTRIC DISTRIBUTION SERVICE 4,175
CUSTOMER IN THE CERTIFIED TERRITORY OF THE ELECTRIC UTILITY FOR 4,176
WHICH THE TRANSITION REVENUES ARE APPROVED AND SHALL BE BILLED ON 4,177
EACH KILOWATT HOUR OF ELECTRICITY DELIVERED TO THE CUSTOMER BY 4,178
THE ELECTRIC DISTRIBUTION UTILITY AS REGISTERED ON THE CUSTOMER'S 4,179
METER DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD AS KILOWATT 4,181
HOUR IS DEFINED IN SECTION 4909.161 OF THE REVISED CODE OR, IF NO
METER IS USED, AS BASED ON AN ESTIMATE OF KILOWATT HOURS USED OR 4,182
CONSUMED BY THE CUSTOMER. THE TRANSITION CHARGE FOR EACH 4,183
CUSTOMER CLASS SHALL REFLECT THE COST ALLOCATION TO THAT CLASS AS 4,184
PROVIDED UNDER BUNDLED RATES AND CHARGES IN EFFECT ON THE DAY 4,185
BEFORE THE EFFECTIVE DATE OF THIS SECTION. ADDITIONALLY, AS 4,186
REFLECTED IN SECTION 4928.40 OF THE REVISED CODE, THE TRANSITION 4,187
CHARGES SHALL BE STRUCTURED TO PROVIDE SHOPPING INCENTIVES TO 4,189
CUSTOMERS SUFFICIENT TO ENCOURAGE THE DEVELOPMENT OF EFFECTIVE 4,190
COMPETITION IN THE SUPPLY OF RETAIL ELECTRIC GENERATION SERVICE. 4,191
TO THE EXTENT POSSIBLE, THE LEVEL AND STRUCTURE OF THE TRANSITION 4,192
CHARGE SHALL BE DESIGNED TO AVOID REVENUE RESPONSIBILITY SHIFTS 4,193
AMONG THE UTILITY'S CUSTOMER CLASSES AND RATE SCHEDULES. 4,194
(2)(a) NOTWITHSTANDING DIVISION (A)(1)(b) OF THIS SECTION, 4,198
THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON ELECTRICITY 4,199
102
SUPPLIED BY A MUNICIPAL ELECTRIC UTILITY TO A RETAIL ELECTRIC 4,200
DISTRIBUTION SERVICE CUSTOMER IN THE CERTIFIED TERRITORY OF THE 4,202
ELECTRIC UTILITY FOR WHICH THE TRANSITION REVENUES ARE APPROVED, 4,203
IF THE MUNICIPAL ELECTRIC UTILITY PROVIDES ELECTRIC TRANSMISSION 4,204
OR DISTRIBUTION SERVICE, OR BOTH SERVICES, THROUGH TRANSMISSION 4,205
OR DISTRIBUTION FACILITIES SINGLY OR JOINTLY OWNED OR OPERATED BY 4,206
THE MUNICIPAL ELECTRIC UTILITY, AND IF THE MUNICIPAL ELECTRIC 4,207
UTILITY WAS IN EXISTENCE, OPERATING, AND PROVIDING SERVICE AS OF
JANUARY 1, 1999. 4,208
(b) THE TRANSITION CHARGE SHALL NOT BE PAYABLE ON 4,210
ELECTRICITY SUPPLIED OR CONSUMED IN THIS STATE EXCEPT SUCH 4,211
ELECTRICITY AS IS DELIVERED TO A RETAIL CUSTOMER BY AN ELECTRIC 4,212
DISTRIBUTION UTILITY AND IS REGISTERED ON THE CUSTOMER'S METER 4,213
DURING THE UTILITY'S MARKET DEVELOPMENT PERIOD OR, IF NO METER IS 4,214
USED, IS BASED ON AN ESTIMATE OF KILOWATT HOURS USED OR CONSUMED
BY THE CUSTOMER. HOWEVER, NO TRANSITION CHARGE SHALL BE PAYABLE 4,215
ON ELECTRICITY THAT IS BOTH PRODUCED AND CONSUMED IN THIS STATE 4,216
BY A SELF-GENERATOR.
(3) THE TRANSITION CHARGE SHALL NOT BE DISCOUNTED BY ANY 4,218
PARTY.
(4) NOTHING PREVENTS PAYMENT OF ALL OR PART OF THE 4,220
TRANSITION CHARGE BY ANOTHER PARTY ON A CUSTOMER'S BEHALF IF THAT 4,221
PAYMENT DOES NOT CONTRAVENE SECTIONS 4905.33 TO 4905.35 OF THE 4,222
REVISED CODE OR THIS CHAPTER. 4,223
(B) THE ELECTRIC UTILITY SHALL SEPARATELY ITEMIZE AND 4,225
DISCLOSE, OR CAUSE ITS BILLING AND COLLECTION AGENT TO SEPARATELY 4,226
ITEMIZE AND DISCLOSE, THE TRANSITION CHARGE ON THE CUSTOMER'S 4,227
BILL IN ACCORDANCE WITH REASONABLE SPECIFICATIONS THE COMMISSION 4,228
SHALL PRESCRIBE BY RULE UNDER DIVISION (A) OF SECTION 4928.06 OF 4,229
THE REVISED CODE.
Sec. 4928.38. PURSUANT TO A TRANSITION PLAN APPROVED UNDER 4,231
SECTION 4928.33 OF THE REVISED CODE, AN ELECTRIC UTILITY IN THIS 4,233
STATE MAY RECEIVE TRANSITION REVENUES UNDER SECTIONS 4928.31 TO 4,235
4928.40 OF THE REVISED CODE, BEGINNING ON THE STARTING DATE OF 4,237
103
COMPETITIVE RETAIL ELECTRIC SERVICE. EXCEPT AS PROVIDED IN
SECTIONS 4905.33 TO 4905.35 OF THE REVISED CODE AND THIS CHAPTER, 4,239
AN ELECTRIC UTILITY THAT RECEIVES SUCH TRANSITION REVENUES SHALL 4,240
BE WHOLLY RESPONSIBLE FOR HOW TO USE THOSE REVENUES AND WHOLLY 4,241
RESPONSIBLE FOR WHETHER IT IS IN A COMPETITIVE POSITION AFTER THE 4,242
MARKET DEVELOPMENT PERIOD. THE UTILITY'S RECEIPT OF TRANSITION 4,243
REVENUES SHALL TERMINATE AT THE END OF THE MARKET DEVELOPMENT 4,244
PERIOD. WITH THE TERMINATION OF THAT APPROVED REVENUE SOURCE, 4,245
THE UTILITY SHALL BE FULLY ON ITS OWN IN THE COMPETITIVE MARKET. 4,246
THE COMMISSION SHALL NOT AUTHORIZE THE RECEIPT OF TRANSITION 4,247
REVENUES OR ANY EQUIVALENT REVENUES BY AN ELECTRIC UTILITY EXCEPT 4,248
AS EXPRESSLY AUTHORIZED IN SECTIONS 4928.31 TO 4928.40 OF THE 4,249
REVISED CODE.
Sec. 4928.39. UPON THE FILING OF AN APPLICATION BY AN 4,251
ELECTRIC UTILITY UNDER SECTION 4928.31 OF THE REVISED CODE FOR 4,252
THE OPPORTUNITY TO RECEIVE TRANSITION REVENUES UNDER SECTIONS 4,253
4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC UTILITIES 4,254
COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE REVISED CODE, 4,255
SHALL DETERMINE THE TOTAL ALLOWABLE AMOUNT OF THE TRANSITION 4,256
COSTS OF THE UTILITY TO BE RECEIVED AS TRANSITION REVENUES UNDER 4,257
THOSE SECTIONS. SUCH AMOUNT SHALL BE THE JUST AND REASONABLE 4,258
TRANSITION COSTS OF THE UTILITY, WHICH COSTS THE COMMISSION FINDS 4,259
MEET ALL OF THE FOLLOWING CRITERIA: 4,260
(A) THE COSTS WERE PRUDENTLY INCURRED. 4,262
(B) THE COSTS ARE LEGITIMATE, NET, VERIFIABLE, AND 4,264
DIRECTLY ASSIGNABLE OR ALLOCABLE TO RETAIL ELECTRIC GENERATION 4,265
SERVICE PROVIDED TO ELECTRIC CONSUMERS IN THIS STATE. 4,267
(C) THE COSTS ARE UNRECOVERABLE IN A COMPETITIVE MARKET. 4,269
(D) THE UTILITY WOULD OTHERWISE BE ENTITLED AN OPPORTUNITY 4,271
TO RECOVER THE COSTS. 4,273
TRANSITION COSTS UNDER THIS SECTION SHALL INCLUDE THE COSTS 4,275
OF EMPLOYEE ASSISTANCE UNDER THE EMPLOYEE ASSISTANCE PLAN 4,276
INCLUDED IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER SECTION 4,277
4928.33 OF THE REVISED CODE, WHICH COSTS EXCEED THOSE COSTS 4,278
104
CONTEMPLATED IN LABOR CONTRACTS IN EFFECT ON THE EFFECTIVE DATE
OF THIS SECTION. 4,279
FURTHER, THE COMMISSION'S ORDER UNDER THIS SECTION SHALL 4,282
SEPARATELY IDENTIFY REGULATORY ASSETS OF THE UTILITY THAT ARE A
PART OF THE TOTAL ALLOWABLE AMOUNT OF TRANSITION COSTS DETERMINED 4,283
UNDER THIS SECTION AND SEPARATELY IDENTIFY THAT PORTION OF A 4,284
TRANSITION CHARGE DETERMINED UNDER SECTION 4928.40 OF THE REVISED 4,285
CODE THAT IS ALLOCABLE TO THOSE ASSETS, WHICH PORTION OF A 4,286
TRANSITION CHARGE SHALL BE SUBJECT TO ADJUSTMENT ONLY 4,287
PROSPECTIVELY AND AFTER DECEMBER 31, 2004, UNLESS THE COMMISSION 4,288
AUTHORIZES AN ADJUSTMENT PROSPECTIVELY WITH AN EARLIER DATE FOR 4,289
ANY CUSTOMER CLASS BASED UPON AN EARLIER TERMINATION OF THE 4,290
UTILITY'S MARKET DEVELOPMENT PERIOD PURSUANT TO DIVISION (B)(2) 4,291
OF SECTION 4928.40 OF THE REVISED CODE.
THE ELECTRIC UTILITY SHALL HAVE THE BURDEN OF DEMONSTRATING 4,293
ALLOWABLE TRANSITION COSTS AS AUTHORIZED UNDER THIS SECTION. THE 4,294
COMMISSION MAY IMPOSE REASONABLE COMMITMENTS UPON THE UTILITY'S 4,295
COLLECTION OF THE TRANSITION REVENUES TO ENSURE THAT THOSE 4,296
REVENUES ARE USED TO ELIMINATE THE ALLOWABLE TRANSITION COSTS OF 4,297
THE UTILITY DURING THE MARKET DEVELOPMENT PERIOD AND ARE NOT 4,298
AVAILABLE FOR USE BY THE UTILITY TO ACHIEVE AN UNDUE COMPETITIVE 4,299
ADVANTAGE, OR TO IMPOSE AN UNDUE DISADVANTAGE, IN THE PROVISION 4,300
BY THE UTILITY OF REGULATED OR UNREGULATED PRODUCTS OR SERVICES. 4,301
Sec. 4928.40. (A) UPON DETERMINING UNDER SECTION 4928.39 4,303
OF THE REVISED CODE THE ALLOWABLE TRANSITION COSTS OF AN ELECTRIC 4,305
UTILITY AUTHORIZED FOR COLLECTION AS TRANSITION REVENUES UNDER
SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE, THE PUBLIC 4,306
UTILITIES COMMISSION, BY ORDER UNDER SECTION 4928.33 OF THE 4,307
REVISED CODE, SHALL ESTABLISH THE TRANSITION CHARGE FOR EACH 4,308
CUSTOMER CLASS OF THE ELECTRIC UTILITY AND, TO THE EXTENT 4,309
POSSIBLE, EACH RATE SCHEDULE WITHIN EACH SUCH CUSTOMER CLASS, 4,310
WITH ALL SUCH TRANSITION CHARGES BEING COLLECTED AS PROVIDED IN 4,312
DIVISION (A)(1)(b) OF SECTION 4928.37 OF THE REVISED CODE DURING 4,313
A MARKET DEVELOPMENT PERIOD FOR THE UTILITY, ENDING ON SUCH DATE 4,314
105
AS THE COMMISSION SHALL REASONABLY PRESCRIBE. THE MARKET
DEVELOPMENT PERIOD SHALL END ON DECEMBER 31, 2005, UNLESS 4,315
OTHERWISE AUTHORIZED UNDER DIVISION (B)(2) OF THIS SECTION. 4,316
HOWEVER, THE COMMISSION MAY SET THE UTILITY'S RECOVERY OF THE 4,317
REVENUE REQUIREMENTS ASSOCIATED WITH REGULATORY ASSETS, AS 4,318
ESTABLISHED PURSUANT TO SECTION 4928.39 OF THE REVISED CODE, TO 4,319
END NOT LATER THAN DECEMBER 31, 2010. THE COMMISSION SHALL NOT 4,320
PERMIT THE CREATION OR AMORTIZATION OF ADDITIONAL REGULATORY 4,321
ASSETS WITHOUT NOTICE AND AN OPPORTUNITY TO BE HEARD THROUGH AN 4,322
EVIDENTIARY HEARING AND SHALL NOT INCREASE THE CHARGE RECOVERING 4,324
SUCH REVENUE REQUIREMENTS ASSOCIATED WITH REGULATORY ASSETS.
FACTORS THE COMMISSION SHALL CONSIDER IN PRESCRIBING THE 4,326
EXPIRATION DATE OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AND 4,327
THE TRANSITION CHARGE FOR EACH CUSTOMER CLASS AND RATE SCHEDULE 4,328
OF THE UTILITY INCLUDE, BUT ARE NOT LIMITED TO, THE TOTAL 4,329
ALLOWABLE AMOUNT OF TRANSITION COSTS OF THE ELECTRIC UTILITY AS 4,330
DETERMINED UNDER SECTION 4928.39 OF THE REVISED CODE; THE 4,331
RELEVANT MARKET PRICE FOR THE DELIVERED SUPPLY OF ELECTRICITY TO 4,332
CUSTOMERS IN THAT CUSTOMER CLASS AND, TO THE EXTENT POSSIBLE, IN 4,333
EACH RATE SCHEDULE AS DETERMINED BY THE COMMISSION; AND SUCH 4,334
SHOPPING INCENTIVES BY CUSTOMER CLASS AS ARE CONSIDERED NECESSARY 4,335
TO INDUCE, AT THE MINIMUM, A TWENTY PER CENT LOAD SWITCHING RATE
BY CUSTOMER CLASS HALFWAY THROUGH THE UTILITY'S MARKET 4,336
DEVELOPMENT PERIOD BUT NOT LATER THAN DECEMBER 31, 2003. IN NO 4,337
CASE SHALL THE COMMISSION ESTABLISH A SHOPPING INCENTIVE IN AN 4,338
AMOUNT EXCEEDING THE UNBUNDLED COMPONENT FOR RETAIL ELECTRIC 4,339
GENERATION SERVICE SET IN THE UTILITY'S APPROVED TRANSITION PLAN 4,340
UNDER SECTION 4928.33 OF THE REVISED CODE, AND IN NO CASE SHALL 4,342
THE COMMISSION ESTABLISH A TRANSITION CHARGE IN AN AMOUNT LESS 4,343
THAN ZERO.
(B)(1) THE COMMISSION MAY CONDUCT A PERIODIC REVIEW NO 4,345
MORE OFTEN THAN ANNUALLY AND, AS IT DETERMINES NECESSARY, ADJUST 4,347
THE TRANSITION CHARGES OF THE ELECTRIC UTILITY AS INITIALLY 4,348
ESTABLISHED UNDER DIVISION (A) OF THIS SECTION OR SUBSEQUENTLY 4,349
106
ADJUSTED UNDER THIS DIVISION. ANY SUCH ADJUSTMENT SHALL BE IN 4,350
ACCORDANCE WITH DIVISION (A) OF THIS SECTION AND MAY REFLECT 4,351
CHANGES IN THE RELEVANT MARKET. 4,352
(2) FOR PURPOSES OF THIS CHAPTER, THE MARKET DEVELOPMENT 4,354
PERIOD SHALL NOT END EARLIER THAN DECEMBER 31, 2005, UNLESS, UPON 4,355
APPLICATION BY AN ELECTRIC UTILITY, THE COMMISSION ISSUES AN 4,356
ORDER AUTHORIZING SUCH EARLIER DATE FOR ONE OR MORE CUSTOMER 4,357
CLASSES AS IS SPECIFIED IN THE ORDER, UPON A DEMONSTRATION BY 4,358
THE UTILITY AND A FINDING BY THE COMMISSION OF EITHER OF THE 4,359
FOLLOWING:
(a) THERE IS A TWENTY PER CENT SWITCHING RATE OF THE 4,361
UTILITY'S LOAD BY THE CUSTOMER CLASS. 4,362
(b) EFFECTIVE COMPETITION EXISTS IN THE UTILITY'S 4,364
CERTIFIED TERRITORY. 4,365
(C) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, THE 4,367
COMMISSION SHALL ISSUE AN ORDER UNDER SECTION 4928.33 OF THE 4,369
REVISED CODE APPROVING A TRANSITION PLAN FOR AN ELECTRIC UTILITY 4,370
THAT CONTAINS A RATE REDUCTION FOR RESIDENTIAL CUSTOMERS OF THAT 4,371
UTILITY, PROVIDED THAT THE RATE REDUCTION SHALL NOT INCREASE THE 4,372
RATES OR TRANSITION COST RESPONSIBILITY OF ANY OTHER CUSTOMER 4,373
CLASS OF THE UTILITY. THE RATE REDUCTION SHALL BE IN EFFECT ONLY 4,374
FOR SUCH PORTION OF THE UTILITY'S MARKET DEVELOPMENT PERIOD AS 4,375
THE COMMISSION SHALL SPECIFY AND SHALL BE APPLIED TO THE 4,376
UNBUNDLED GENERATION COMPONENT FOR RETAIL ELECTRIC GENERATION 4,377
SERVICE AS SET IN THE UTILITY'S APPROVED TRANSITION PLAN UNDER 4,378
SECTION 4928.33 OF THE REVISED CODE SUBJECT TO THE PRICE CAP FOR
RESIDENTIAL CUSTOMERS REQUIRED UNDER DIVISION (A)(6) OF SECTION 4,379
4928.34 OF THE REVISED CODE. THE AMOUNT OF THE RATE REDUCTION 4,380
SHALL BE FIVE PER CENT OF THE AMOUNT OF THAT UNBUNDLED GENERATION 4,382
COMPONENT, BUT SHALL NOT UNDULY DISCOURAGE MARKET ENTRY BY 4,383
ALTERNATIVE SUPPLIERS SEEKING TO SERVE THE RESIDENTIAL MARKET IN 4,384
THIS STATE. THE COMMISSION, AFTER REASONABLE NOTICE AND 4,385
OPPORTUNITY FOR HEARING, MAY TERMINATE THE RATE REDUCTION BY 4,386
ORDER UPON A FINDING THAT THE RATE REDUCTION IS UNDULY 4,387
107
DISCOURAGING MARKET ENTRY BY SUCH ALTERNATIVE SUPPLIERS. NO SUCH 4,388
TERMINATION OF THE RATE REDUCTION SHALL TAKE EFFECT PRIOR TO THE 4,389
MIDPOINT OF THE UTILITY'S MARKET DEVELOPMENT PERIOD.
(D) BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,391
ELECTRIC SERVICE, NO ELECTRIC UTILITY IN THIS STATE SHALL 4,392
PROHIBIT THE RESALE OF ELECTRIC GENERATION SERVICE OR IMPOSE 4,393
UNREASONABLE OR DISCRIMINATORY CONDITIONS OR LIMITATIONS ON THE 4,394
RESALE OF ELECTRIC GENERATION SERVICE. 4,395
(E) NOTWITHSTANDING ANY PROVISION OF TITLE XLIX OF THE 4,398
REVISED CODE TO THE CONTRARY, ANY CUSTOMER THAT RECEIVES A 4,399
NONCOMPETITIVE RETAIL ELECTRIC SERVICE FROM AN ELECTRIC 4,400
DISTRIBUTION UTILITY SHALL BE A RETAIL ELECTRIC DISTRIBUTION 4,401
SERVICE CUSTOMER, IRRESPECTIVE OF THE VOLTAGE LEVEL AT WHICH 4,402
SERVICE IS TAKEN.
Sec. 4928.41. THE TRANSITION REVENUE AUTHORITY PROVIDED 4,404
UNDER SECTIONS 4928.31 TO 4928.40 OF THE REVISED CODE FOR 4,405
ELECTRIC UTILITIES DOES NOT AFFECT THE AUTHORITY OF AN ELECTRIC 4,406
COOPERATIVE IN THIS STATE TO RECEIVE TRANSITION REVENUES. 4,407
Sec. 4928.42. PRIOR TO THE STARTING DATE OF COMPETITIVE 4,409
RETAIL ELECTRIC SERVICE, THE PUBLIC UTILITIES COMMISSION, IN 4,410
CONSULTATION WITH THE CONSUMERS' COUNSEL AND WITH OTHER STATE 4,411
AGENCIES AS CONSIDERED NECESSARY, SHALL PRESCRIBE AND ADOPT BY 4,412
ORDER A GENERAL PLAN BY WHICH EACH ELECTRIC UTILITY SHALL PROVIDE 4,413
DURING ITS MARKET DEVELOPMENT PERIOD CONSUMER EDUCATION ON 4,414
ELECTRIC RESTRUCTURING UNDER THIS CHAPTER. THE GENERAL PLAN 4,415
SHALL REQUIRE THE UTILITIES TO SPEND ON SUCH CONSUMER EDUCATION 4,416
WITHIN THEIR RESPECTIVE CERTIFIED SERVICE TERRITORIES IN THE 4,417
AGGREGATE UP TO SIXTEEN MILLION DOLLARS IN THE FIRST YEAR OF THAT 4,418
PERIOD AND AN ADDITIONAL SEVENTEEN MILLION DOLLARS IN THE 4,419
AGGREGATE IN DECREASING AMOUNTS OVER THE REMAINING YEARS OF EACH 4,420
UTILITY'S MARKET DEVELOPMENT PERIOD, WITH THE AGGREGATE AMOUNTS 4,421
DIVIDED AMONG THE UTILITIES BASED ON THEIR RESPECTIVE NUMBER OF 4,422
CUSTOMERS AS OF DECEMBER 31, 1997. THE GENERAL PLAN SHALL 4,423
PROHIBIT SUCH CONSUMER EDUCATION FROM OCCURRING IN COMBINATION 4,424
108
WITH MARKETING FOR THE UTILITY'S OR ITS AFFILIATE'S RETAIL 4,425
ELECTRIC SERVICES.
Sec. 4928.43. (A) EACH STATE AGENCY THAT PROVIDES 4,427
EMPLOYMENT ASSISTANCE AND JOB TRAINING PROGRAMS, INCLUDING THE 4,429
BUREAU OF EMPLOYMENT SERVICES AND THE DEPARTMENT OF DEVELOPMENT, 4,430
SHALL PROVIDE CONCENTRATED ATTENTION THROUGH THOSE PROGRAMS TO 4,431
ASSISTING EMPLOYEES WHOSE EMPLOYMENT IS AFFECTED BY ELECTRIC 4,432
INDUSTRY RESTRUCTURING UNDER THIS CHAPTER. 4,433
(B) TO THE EXTENT NOT PROHIBITED BY FEDERAL LAW OR ANY LAW 4,435
OF THIS STATE AND EXCEPT AS OTHERWISE PROVIDED IN A LABOR 4,436
CONTRACT OR OTHER AGREEMENT, NO UNENCUMBERED MONEY IN A PENSION 4,438
FUND FOR EMPLOYEES OF ELECTRIC UTILITIES SHALL BE USED FOR ANY 4,439
PURPOSE OTHER THAN TO PAY ALLOWABLE PENSIONS OR EARLY RETIREMENT 4,440
BUYOUTS FOR THE EMPLOYEES. 4,441
Sec. 4928.431. (A)(1) THERE IS HEREBY CREATED AN ELECTRIC 4,444
EMPLOYEE ASSISTANCE ADVISORY BOARD, CONSISTING OF TWELVE MEMBERS, 4,445
AS FOLLOWS: TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES 4,446
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, NEITHER 4,447
OF THE SAME POLITICAL PARTY; TWO MEMBERS OF THE SENATE APPOINTED 4,448
BY THE PRESIDENT OF THE SENATE, NEITHER OF THE SAME POLITICAL 4,449
PARTY; AND FOUR REPRESENTATIVES OF ELECTRIC UTILITIES IN THIS 4,450
STATE AND FOUR REPRESENTATIVES OF ELECTRIC INDUSTRY EMPLOYEES, 4,451
ALL APPOINTED BY THE GOVERNOR. INITIAL APPOINTMENTS SHALL BE 4,452
MADE NOT LATER THAN DECEMBER 31, 1999. 4,453
(2) INITIAL TERMS OF THE MEMBERS APPOINTED BY THE GOVERNOR 4,455
SHALL END ON DECEMBER 31, 2001. THEREAFTER, TERMS OF APPOINTED 4,457
MEMBERS SHALL BE FOR TWO YEARS WITH EACH TERM ENDING ON THE SAME 4,458
DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. EACH MEMBER SHALL 4,459
HOLD OFFICE FROM THE DATE OF THE MEMBER'S APPOINTMENT UNTIL THE 4,460
END OF THE TERM FOR WHICH THE MEMBER WAS APPOINTED. MEMBERS MAY 4,461
BE REAPPOINTED. 4,462
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,464
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,465
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,466
109
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,467
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,468
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,469
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,470
HAS ELAPSED, WHICHEVER OCCURS FIRST. BOARD MEMBERS SHALL RECEIVE 4,471
NO COMPENSATION OR REIMBURSEMENT FOR EXPENSES. 4,472
(3) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,474
AMONG ITS MEMBERS. ONLY BOARD MEMBERS APPOINTED BY THE GOVERNOR 4,475
SHALL BE VOTING MEMBERS OF THE BOARD; EACH SHALL HAVE ONE VOTE IN 4,477
ALL DELIBERATIONS OF THE BOARD. A MAJORITY OF THE VOTING MEMBERS 4,478
CONSTITUTES A QUORUM.
(B) THE DUTIES OF THE ADVISORY BOARD SHALL BE TO MAKE 4,480
RECOMMENDATIONS TO THE PUBLIC UTILITIES COMMISSION REGARDING ITS 4,481
APPROVAL OF AN EMPLOYEE ASSISTANCE PLAN FILED IN ACCORDANCE WITH 4,482
SECTION 4928.31 OF THE REVISED CODE AND REGARDING GENERAL 4,483
ELIGIBILITY STANDARDS APPLICABLE TO BENEFITS UNDER THE PLAN FOR 4,484
AFFECTED EMPLOYEES. 4,485
Sec. 4928.44. (A) THE PUBLIC UTILITIES COMMISSION MAY 4,487
DETERMINE, BY ORDER AND AFTER REASONABLE NOTICE AND OPPORTUNITY 4,488
FOR HEARING, THAT CUSTOMERS THAT ARE NONFIRM ELECTRIC SERVICE 4,489
CUSTOMERS OF ELECTRIC UTILITIES ON THE EFFECTIVE DATE OF THIS 4,490
SECTION WOULD BE ASSISTED BY THE IMPLEMENTATION BY EACH SUCH 4,491
UTILITY OF A SERVICE SCHEDULE THAT COMPLIES WITH DIVISION (C) OF 4,492
THIS SECTION. IN THE ORDER, THE COMMISSION SHALL SPECIFY THE 4,493
PERIOD OF TIME, ENDING NOT LATER THAN DECEMBER 31, 2005, DURING 4,494
WHICH THE SERVICE OFFERING WOULD BE AVAILABLE TO ANY SUCH NONFIRM 4,495
ELECTRIC SERVICE CUSTOMERS OR A GROUP OF SUCH CUSTOMERS. UPON 4,496
THE ISSUANCE OF THE ORDER, ANY SUCH NONFIRM ELECTRIC SERVICE 4,497
CUSTOMER OR A GROUP OF SUCH CUSTOMERS SHALL BE, FOR THE PURPOSES 4,498
OF THIS SECTION, ELIGIBLE CUSTOMERS IN EACH ELECTRIC UTILITY'S 4,499
TRANSMISSION TARIFF SUBJECT TO THE JURISDICTION OF THE FEDERAL 4,500
ENERGY REGULATORY COMMISSION FOR THE PERIOD SPECIFIED IN THE 4,501
ORDER, AND EACH ELECTRIC UTILITY WITH NONFIRM CUSTOMERS SHALL 4,502
FILE A SERVICE SCHEDULE PURSUANT TO SECTION 4909.18 OF THE 4,503
110
REVISED CODE TO EFFECTUATE THIS SERVICE OFFERING. 4,504
(B) THE SERVICE SCHEDULE AUTHORIZED UNDER DIVISION (A) OF 4,506
THIS SECTION, FOR THE PERIOD ENDING NOT LATER THAN DECEMBER 31, 4,507
2005, AS SPECIFIED IN THE COMMISSION'S ORDER UNDER THAT DIVISION, 4,508
SHALL PROVIDE FOR DIRECT, COMPARABLE AND NONDISCRIMINATORY ACCESS 4,509
TO THE TRANSMISSION AND DISTRIBUTION SERVICES, CAPACITIES, 4,510
FUNCTIONS, AND FACILITIES OF THE ELECTRIC UTILITY BY ANY CUSTOMER 4,511
THAT IS A NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE 4,512
OF THIS SECTION OR BY A GROUP OF ANY SUCH CUSTOMERS, FOR THE 4,513
PURPOSE OF SECURING FROM A SUPPLIER OR SUPPLIERS OF THE 4,514
CUSTOMER'S OR GROUP'S CHOICE ALL OR A PORTION OF THE CUSTOMER'S 4,515
OR GROUP'S ELECTRIC POWER AND ENERGY REQUIREMENTS NOT SERVED BY 4,516
AN ELECTRIC UTILITY DURING A TIME OF NONEMERGENCY CURTAILMENT OR 4,517
INTERRUPTION.
THE FAILURE OF AN ELECTRIC UTILITY TO FILE SUCH SCHEDULE 4,519
CONSTITUTES INADEQUATE SERVICE UNDER TITLE XLIX OF THE REVISED 4,520
CODE.
(C) THE SERVICE OFFERING AUTHORIZED PURSUANT TO THIS 4,522
SECTION SHALL BE IN ADDITION TO ANY SERVICE OPTIONS OTHERWISE 4,523
AVAILABLE TO A NONFIRM ELECTRIC SERVICE CUSTOMER OR GROUP OF 4,524
NONFIRM ELECTRIC SERVICE CUSTOMERS. IF A CUSTOMER THAT IS A 4,525
NONFIRM ELECTRIC SERVICE CUSTOMER ON THE EFFECTIVE DATE OF THIS 4,526
SECTION OR A GROUP OF SUCH CUSTOMERS ELECTS TO MEET ALL OR A 4,527
PORTION OF THE CUSTOMER'S OR GROUP'S ELECTRIC POWER AND ENERGY 4,528
REQUIREMENTS NOT SERVED BY AN ELECTRIC UTILITY DURING A TIME OF 4,529
NONEMERGENCY CURTAILMENT OR INTERRUPTION, BY PURCHASING 4,530
ELECTRICITY AND RELATED SERVICES FROM A SUPPLIER OR SUPPLIERS 4,531
OTHER THAN THAT ELECTRIC UTILITY, ANY EXISTING SERVICE 4,532
ARRANGEMENT UNDER SECTION 4905.31 OF THE REVISED CODE OR ANY
EXISTING SCHEDULE UNDER SECTION 4905.30 OF THE REVISED CODE SHALL 4,534
BE MODIFIED TO PERMIT THIS ELECTION TO OCCUR WITHOUT ECONOMIC 4,535
PENALTY AND TO FACILITATE THE CUSTOMER'S OR GROUP'S ACCESS TO THE 4,536
ELECTRIC MARKET FOR THE PURPOSE OF MANAGING SUPPLY AND PRICE 4,537
VOLATILITY RISKS.
111
(D) NOTHING IN DIVISIONS (A) TO (C) OF THIS SECTION 4,539
AFFECTS ANY OBLIGATION OF AN ELECTRIC UTILITY TO CURTAIL OR 4,540
INTERRUPT ELECTRIC TRANSMISSION OR DISTRIBUTION SERVICE TO THE
EXTENT REQUIRED TO PROTECT THE INTERESTS OF FIRM ELECTRIC SERVICE
CUSTOMERS FROM AN INJURY THAT IS OTHERWISE UNAVOIDABLE BUT FOR 4,541
THE CURTAILMENT OR INTERRUPTION. NOTHING IN THOSE DIVISIONS 4,542
SHALL BE CONSTRUED OR APPLIED TO INCREASE RATES AND CHARGES FOR 4,543
FIRM ELECTRIC SERVICE CUSTOMERS INCLUDING RESIDENTIAL FIRM 4,544
ELECTRIC SERVICE CUSTOMERS.
Sec. 4928.51. (A) THERE IS HEREBY ESTABLISHED IN THE 4,546
STATE TREASURY A UNIVERSAL SERVICE FUND, INTO WHICH SHALL BE 4,547
DEPOSITED ALL UNIVERSAL SERVICE REVENUES REMITTED TO THE DIRECTOR 4,548
OF DEVELOPMENT UNDER THIS SECTION, FOR THE EXCLUSIVE PURPOSES OF 4,549
PROVIDING FUNDING FOR THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS 4,550
AND FOR THE CONSUMER EDUCATION PROGRAM AUTHORIZED UNDER SECTION 4,551
4928.56 OF THE REVISED CODE, AND PAYING THE ADMINISTRATIVE COSTS 4,552
OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,553
EDUCATION PROGRAM. INTEREST ON THE FUND SHALL BE CREDITED TO THE 4,554
FUND. DISBURSEMENTS FROM THE FUND SHALL BE MADE TO ANY SUPPLIER 4,555
THAT PROVIDES A COMPETITIVE RETAIL ELECTRIC SERVICE OR A 4,556
NONCOMPETITIVE RETAIL ELECTRIC SERVICE TO A CUSTOMER WHO IS 4,558
APPROVED TO RECEIVE ASSISTANCE UNDER A SPECIFIED LOW-INCOME
CUSTOMER ASSISTANCE PROGRAM AND TO ANY AUTHORIZED PROVIDER OF 4,559
WEATHERIZATION OR ENERGY EFFICIENCY SERVICE TO A CUSTOMER 4,560
APPROVED TO RECEIVE SUCH ASSISTANCE UNDER A SPECIFIED LOW-INCOME 4,561
CUSTOMER ASSISTANCE PROGRAM. 4,562
(B) UNIVERSAL SERVICE REVENUES SHALL INCLUDE ALL OF THE 4,564
FOLLOWING: 4,565
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,567
AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 2000, 4,568
ATTRIBUTABLE TO THE COLLECTION FROM CUSTOMERS OF THE UNIVERSAL 4,570
SERVICE RIDER PRESCRIBED UNDER SECTION 4928.52 OF THE REVISED 4,571
CODE;
(2) REVENUES REMITTED TO THE DIRECTOR THAT HAVE BEEN 4,573
112
COLLECTED BY AN ELECTRIC DISTRIBUTION UTILITY BEGINNING JULY 1, 4,574
2000, AS CUSTOMER PAYMENTS UNDER THE PERCENTAGE OF INCOME PAYMENT 4,576
PLAN PROGRAM, INCLUDING REVENUES REMITTED UNDER DIVISION (C) OF 4,577
THIS SECTION;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,579
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,580
COOPERATIVE IN THIS STATE NOT EARLIER THAN JULY 1, 2000, UPON THE 4,582
UTILITY'S OR COOPERATIVE'S DECISION TO PARTICIPATE IN THE 4,583
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS.
(C)(1) BEGINNING JULY 1, 2000, AN ELECTRIC DISTRIBUTION 4,585
UTILITY SHALL TRANSFER TO THE DIRECTOR THE RIGHT TO COLLECT ALL 4,587
ARREARAGE PAYMENTS OF A CUSTOMER FOR PERCENTAGE OF INCOME PAYMENT 4,588
PLAN PROGRAM DEBT OWED TO THE UTILITY ON THE DAY BEFORE THAT DATE 4,589
OR RETAIN THE RIGHT TO COLLECT THAT DEBT BUT REMIT TO THE 4,590
DIRECTOR ALL PROGRAM REVENUES RECEIVED BY THE UTILITY FOR THAT 4,591
CUSTOMER.
(2) A CURRENT OR PAST PERCENTAGE OF INCOME PAYMENT PLAN 4,592
PROGRAM CUSTOMER IS RELIEVED OF ANY PAYMENT OBLIGATION UNDER THE 4,593
PERCENTAGE OF INCOME PAYMENT PROGRAM FOR ANY UNPAID ARREARS 4,594
ACCRUED BY THE CUSTOMER UNDER THE PROGRAM AS OF THE EFFECTIVE 4,595
DATE OF THIS SECTION IF THE CUSTOMER, AS DETERMINED BY THE 4,596
DIRECTOR, MEETS BOTH OF THE FOLLOWING CRITERIA: 4,597
(a) THE CUSTOMER AS OF THAT DATE HAS COMPLIED WITH 4,598
CUSTOMER PAYMENT RESPONSIBILITIES UNDER THE PROGRAM. 4,599
(b) THE CUSTOMER IS PERMANENTLY AND TOTALLY DISABLED AS 4,600
DEFINED IN SECTION 5117.01 OF THE REVISED CODE OR IS SIXTY-FIVE 4,602
YEARS OF AGE OR OLDER AS DEFINED IN THAT SECTION. 4,603
(D) THE PUBLIC UTILITIES COMMISSION SHALL COMPLETE AN 4,605
AUDIT OF EACH ELECTRIC UTILITY BY JULY 1, 2000, FOR THE PURPOSE 4,606
OF ESTABLISHING A BASELINE FOR THE PERCENTAGE OF INCOME PAYMENT 4,607
PLAN PROGRAM COMPONENT OF THE LOW-INCOME ASSISTANCE PROGRAMS. 4,608
Sec. 4928.52. (A) BEGINNING JULY 1, 2000, THE UNIVERSAL 4,610
SERVICE RIDER SHALL REPLACE THE PERCENTAGE OF INCOME PAYMENT PLAN 4,612
RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION AND ANY 4,614
113
AMOUNT IN THE RATES OF AN ELECTRIC UTILITY FOR THE FUNDING OF 4,615
LOW-INCOME CUSTOMER ENERGY EFFICIENCY PROGRAMS. THE UNIVERSAL
SERVICE RIDER SHALL BE A RIDER ON RETAIL ELECTRIC DISTRIBUTION 4,618
SERVICE RATES AS SUCH RATES ARE DETERMINED BY THE PUBLIC 4,619
UTILITIES COMMISSION PURSUANT TO THIS CHAPTER. THE UNIVERSAL 4,620
SERVICE RIDER FOR THE FIRST FIVE YEARS AFTER THE STARTING DATE OF 4,621
COMPETITIVE RETAIL ELECTRIC SERVICE SHALL BE THE SUM OF ALL OF 4,622
THE FOLLOWING:
(1) THE LEVEL OF THE PERCENTAGE OF INCOME PAYMENT PLAN 4,624
PROGRAM RIDER IN EXISTENCE ON THE EFFECTIVE DATE OF THIS SECTION; 4,625
(2) AN AMOUNT EQUAL TO THE LEVEL OF FUNDING FOR LOW-INCOME 4,627
CUSTOMER ENERGY EFFICIENCY PROGRAMS PROVIDED THROUGH ELECTRIC 4,628
UTILITY RATES IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION; 4,629
(3) ANY ADDITIONAL AMOUNT NECESSARY AND SUFFICIENT TO FUND 4,631
THROUGH THE UNIVERSAL SERVICE RIDER THE ADMINISTRATIVE COSTS OF 4,632
THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER 4,633
EDUCATION PROGRAM CREATED IN SECTION 4928.56 OF THE REVISED CODE. 4,634
(B) IF, DURING OR AFTER THE FIVE-YEAR PERIOD SPECIFIED IN 4,636
DIVISION (A) OF THIS SECTION, THE DIRECTOR OF DEVELOPMENT, AFTER 4,638
CONSULTATION WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED 4,639
UNDER SECTION 4928.58 OF THE REVISED CODE, DETERMINES THAT 4,640
REVENUES IN THE UNIVERSAL SERVICE FUND AND REVENUES FROM FEDERAL 4,642
OR OTHER SOURCES OF FUNDING FOR THOSE PROGRAMS, INCLUDING GENERAL 4,644
REVENUE FUND APPROPRIATIONS FOR THE OHIO ENERGY CREDIT PROGRAM, 4,645
WILL BE INSUFFICIENT TO COVER THE ADMINISTRATIVE COSTS OF THE 4,646
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS AND THE CONSUMER
EDUCATION PROGRAM AND PROVIDE ADEQUATE FUNDING FOR THOSE 4,647
PROGRAMS, THE DIRECTOR SHALL FILE A PETITION WITH THE COMMISSION 4,648
FOR AN INCREASE IN THE UNIVERSAL SERVICE RIDER. THE COMMISSION, 4,649
AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, MAY ADJUST 4,650
THE UNIVERSAL SERVICE RIDER BY THE MINIMUM AMOUNT NECESSARY TO 4,651
PROVIDE THE ADDITIONAL REVENUES. THE COMMISSION SHALL NOT 4,652
DECREASE THE UNIVERSAL SERVICE RIDER WITHOUT THE APPROVAL OF THE 4,653
DIRECTOR, AFTER CONSULTATION BY THE DIRECTOR WITH THE ADVISORY 4,654
114
BOARD.
(C) THE UNIVERSAL SERVICE RIDER ESTABLISHED UNDER DIVISION 4,656
(A) OR (B) OF THIS SECTION SHALL BE SET IN SUCH A MANNER SO AS 4,658
NOT TO SHIFT AMONG THE CUSTOMER CLASSES OF ELECTRIC DISTRIBUTION 4,659
UTILITIES THE COSTS OF FUNDING LOW-INCOME CUSTOMER ASSISTANCE 4,661
PROGRAMS.
Sec. 4928.53. (A) BEGINNING JULY 1, 2000, THE DIRECTOR OF 4,664
DEVELOPMENT IS HEREBY AUTHORIZED TO ADMINISTER THE LOW-INCOME 4,665
CUSTOMER ASSISTANCE PROGRAMS. FOR THAT PURPOSE, THE PUBLIC 4,667
UTILITIES COMMISSION SHALL COOPERATE WITH AND PROVIDE SUCH 4,668
ASSISTANCE AS THE DIRECTOR REQUIRES FOR ADMINISTRATION OF THE 4,669
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE DIRECTOR SHALL 4,670
CONSOLIDATE THE ADMINISTRATION OF AND REDESIGN AND COORDINATE THE 4,671
OPERATIONS OF THOSE PROGRAMS WITHIN THE DEPARTMENT TO PROVIDE, TO 4,673
THE MAXIMUM EXTENT POSSIBLE, FOR EFFICIENT PROGRAM ADMINISTRATION 4,674
AND A ONE-STOP APPLICATION AND ELIGIBILITY DETERMINATION PROCESS 4,675
AT THE LOCAL LEVEL FOR CONSUMERS.
(B)(1) NOT LATER THAN MARCH 1, 2000, THE DIRECTOR, IN 4,677
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE, SHALL ADOPT 4,679
RULES TO CARRY OUT SECTIONS 4928.51 TO 4928.58 OF THE REVISED 4,681
CODE AND ENSURE THE EFFECTIVE AND EFFICIENT ADMINISTRATION AND 4,683
OPERATION OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE 4,684
RULES SHALL TAKE EFFECT ON THE JULY 1, 2000. 4,685
(2) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,688
DIVISION FOR THE OHIO ENERGY CREDIT PROGRAM SHALL BE SUBJECT TO 4,689
SUCH RULE-MAKING AUTHORITY AS IS CONFERRED ON THE DIRECTOR BY 4,690
SECTIONS 5117.01 TO 5117.12 OF THE REVISED CODE, AS AMENDED BY 4,691
SUB. S.B. NO. 3 OF THE 123rd GENERAL ASSEMBLY, EXCEPT THAT RULES 4,693
INITIALLY ADOPTED BY THE DIRECTOR FOR THE OHIO ENERGY CREDIT 4,694
PROGRAM SHALL INCORPORATE THE SUBSTANCE OF THOSE SECTIONS AS THEY 4,695
EXIST ON THE EFFECTIVE DATE OF THIS SECTION. 4,696
(3) THE DIRECTOR'S AUTHORITY TO ADOPT RULES UNDER THIS 4,698
DIVISION FOR THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL 4,699
INCLUDE AUTHORITY TO ADOPT RULES PRESCRIBING CRITERIA FOR 4,700
115
CUSTOMER ELIGIBILITY AND POLICIES REGARDING PAYMENT AND CREDITING 4,701
ARRANGEMENTS AND RESPONSIBILITIES, PROCEDURES FOR VERIFYING 4,702
CUSTOMER ELIGIBILITY, PROCEDURES FOR DISBURSING PUBLIC FUNDS TO 4,703
SUPPLIERS AND OTHERWISE ADMINISTERING FUNDS UNDER THE DIRECTOR'S 4,704
JURISDICTION, AND REQUIREMENTS AS TO TIMELY REMITTANCES OF 4,705
REVENUES DESCRIBED IN DIVISION (B) OF SECTION 4928.51 OF THE 4,706
REVISED CODE. THE DIRECTOR'S AUTHORITY IN DIVISION (B)(3) OF 4,707
THIS SECTION EXCLUDES AUTHORITY TO PRESCRIBE SERVICE 4,710
DISCONNECTION AND CUSTOMER BILLING POLICIES AND PROCEDURES AND TO 4,711
ADDRESS COMPLAINTS AGAINST SUPPLIERS UNDER THE PERCENTAGE OF 4,712
PAYMENT PLAN PROGRAM, WHICH EXCLUDED AUTHORITY SHALL BE EXERCISED 4,713
BY THE PUBLIC UTILITIES COMMISSION, IN COORDINATION WITH THE 4,714
DIRECTOR. RULES ADOPTED BY THE DIRECTOR UNDER THIS DIVISION FOR 4,716
THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM SHALL SPECIFY A 4,717
LEVEL OF PAYMENT RESPONSIBILITY TO BE BORNE BY AN ELIGIBLE 4,718
CUSTOMER BASED ON A PERCENTAGE OF THE CUSTOMER'S INCOME. RULES 4,720
INITIALLY ADOPTED BY THE DIRECTOR FOR THE PERCENTAGE OF INCOME 4,721
PAYMENT PLAN PROGRAM SHALL INCORPORATE THE ELIGIBILITY CRITERIA 4,722
AND PAYMENT ARRANGEMENT AND RESPONSIBILITY POLICIES SET FORTH IN 4,723
RULE 4901:1-18-04(B) OF THE OHIO ADMINISTRATIVE CODE IN EFFECT ON 4,725
THE EFFECTIVE DATE OF THIS SECTION.
Sec. 4928.54. BEGINNING ON THE STARTING DATE OF 4,727
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,728
MAY AGGREGATE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM CUSTOMERS 4,729
FOR THE PURPOSE OF COMPETITIVELY AUCTIONING THE SUPPLY OF 4,730
COMPETITIVE RETAIL ELECTRIC GENERATION SERVICE TO BIDDERS 4,731
CERTIFIED UNDER SECTION 4928.08 OF THE REVISED CODE AND FURTHER
QUALIFIED UNDER ELIGIBILITY CRITERIA THE DIRECTOR PRESCRIBES BY 4,733
RULE UNDER DIVISION (B) OF SECTION 4928.53 OF THE REVISED CODE 4,734
AFTER CONSULTATION WITH THE COMMISSION AND ELECTRIC LIGHT 4,735
COMPANIES REGARDING ANY SUCH RULE. THE OBJECTIVES OF THE AUCTION 4,736
SHALL BE TO PROVIDE RELIABLE RETAIL ELECTRIC GENERATION SERVICE 4,737
TO CUSTOMERS, BASED ON SELECTION CRITERIA THAT THE WINNING BID 4,738
PROVIDE THE LOWEST COST AND BEST VALUE TO CUSTOMERS. THE RULES
116
ADOPTED BY THE DIRECTOR UNDER DIVISION (B) OF SECTION 4928.53 OF 4,740
THE REVISED CODE SHALL ENSURE A FAIR AND UNBIASED AUCTION PROCESS 4,741
AND THE PERFORMANCE OF ANY WINNING BIDDER.
Sec. 4928.55. THE DIRECTOR OF DEVELOPMENT SHALL ESTABLISH 4,744
AN ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM TARGETED, TO THE 4,745
EXTENT PRACTICABLE, TO HIGH-COST, HIGH-VOLUME USE STRUCTURES 4,747
OCCUPIED BY CUSTOMERS ELIGIBLE FOR THE PERCENTAGE OF INCOME 4,748
PAYMENT PLAN PROGRAM, WITH THE GOAL OF REDUCING THE ENERGY BILLS 4,749
OF THE OCCUPANTS. ACCEPTANCE OF ENERGY EFFICIENCY AND 4,750
WEATHERIZATION SERVICES PROVIDED BY THE PROGRAM SHALL BE A 4,751
CONDITION FOR THE ELIGIBILITY OF ANY SUCH CUSTOMER TO PARTICIPATE 4,752
IN THE PERCENTAGE OF INCOME PAYMENT PLAN PROGRAM. ANY DIFFERENCE 4,753
BETWEEN UNIVERSAL SERVICE FUND REVENUES UNDER SECTION 4928.51 OF 4,754
THE REVISED CODE AND ANY SAVINGS IN PERCENTAGE OF INCOME PAYMENT 4,755
PLAN PROGRAM COSTS AS A RESULT OF COMPETITIVE AUCTIONING UNDER 4,756
SECTION 4928.54 OF THE REVISED CODE SHALL BE REINVESTED IN THE 4,758
TARGETED ENERGY EFFICIENCY AND WEATHERIZATION PROGRAM.
Sec. 4928.56. THE DIRECTOR OF DEVELOPMENT MAY ADOPT RULES 4,760
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE ESTABLISHING 4,762
AN EDUCATION PROGRAM FOR CONSUMERS ELIGIBLE TO PARTICIPATE IN THE 4,763
LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS. THE EDUCATION PROGRAM 4,764
SHALL PROVIDE INFORMATION TO CONSUMERS REGARDING ENERGY 4,766
EFFICIENCY AND ENERGY CONSERVATION.
Sec. 4928.57. ON AND AFTER THE STARTING DATE OF 4,768
COMPETITIVE RETAIL ELECTRIC SERVICE, THE DIRECTOR OF DEVELOPMENT 4,769
SHALL PROVIDE A REPORT EVERY TWO YEARS UNTIL 2008 TO THE STANDING 4,770
COMMITTEES OF THE GENERAL ASSEMBLY THAT DEAL WITH PUBLIC UTILITY 4,772
MATTERS, REGARDING THE EFFECTIVENESS OF THE LOW-INCOME CUSTOMER
ASSISTANCE PROGRAMS AND THE CONSUMER EDUCATION PROGRAM, AND THE 4,774
EFFECTIVENESS OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,775
CREATED UNDER SECTIONS 4928.61 TO 4928.63 OF THE REVISED CODE. 4,776
Sec. 4928.58. (A) THERE IS HEREBY CREATED THE PUBLIC 4,778
BENEFITS ADVISORY BOARD, WHICH HAS THE PURPOSE OF ENSURING THAT 4,779
ENERGY SERVICES BE PROVIDED TO LOW-INCOME CONSUMERS IN THIS STATE 4,781
117
IN AN AFFORDABLE MANNER CONSISTENT WITH THE POLICY SPECIFIED IN 4,782
SECTION 4928.02 OF THE REVISED CODE. THE ADVISORY BOARD SHALL 4,783
CONSIST OF TWENTY-ONE MEMBERS AS FOLLOWS: THE DIRECTOR OF 4,784
DEVELOPMENT, THE CHAIRPERSON OF THE PUBLIC UTILITIES COMMISSION, 4,786
THE CONSUMERS' COUNSEL, AND THE DIRECTOR OF THE AIR QUALITY
DEVELOPMENT AUTHORITY, EACH SERVING EX OFFICIO AND REPRESENTED BY 4,788
A DESIGNEE AT THE OFFICIAL'S DISCRETION; TWO MEMBERS OF THE HOUSE 4,789
OF REPRESENTATIVES APPOINTED BY THE SPEAKER OF THE HOUSE OF 4,790
REPRESENTATIVES, NEITHER OF THE SAME POLITICAL PARTY, AND TWO 4,791
MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE SENATE, 4,792
NEITHER OF THE SAME POLITICAL PARTY; AND THIRTEEN MEMBERS
APPOINTED BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE 4,793
SENATE, CONSISTING OF ONE REPRESENTATIVE OF SUPPLIERS OF 4,794
COMPETITIVE RETAIL ELECTRIC SERVICE; ONE REPRESENTATIVE OF THE 4,795
RESIDENTIAL CLASS OF ELECTRIC UTILITY CUSTOMERS; ONE 4,796
REPRESENTATIVE OF THE INDUSTRIAL CLASS OF ELECTRIC UTILITY 4,797
CUSTOMERS; ONE REPRESENTATIVE OF THE COMMERCIAL CLASS OF ELECTRIC 4,799
UTILITY CUSTOMERS; ONE REPRESENTATIVE OF AGRICULTURAL OR RURAL
CUSTOMERS OF AN ELECTRIC UTILITY; TWO CUSTOMERS RECEIVING 4,800
ASSISTANCE UNDER ONE OR MORE OF THE LOW-INCOME CUSTOMER 4,801
ASSISTANCE PROGRAMS, TO REPRESENT CUSTOMERS ELIGIBLE FOR ANY SUCH 4,802
ASSISTANCE, INCLUDING SENIOR CITIZENS; ONE REPRESENTATIVE OF THE 4,803
GENERAL PUBLIC; ONE REPRESENTATIVE OF LOCAL INTAKE AGENCIES; ONE 4,805
REPRESENTATIVE OF A COMMUNITY-BASED ORGANIZATION SERVING 4,806
LOW-INCOME CUSTOMERS; ONE REPRESENTATIVE OF ENVIRONMENTAL 4,807
PROTECTION INTERESTS; ONE REPRESENTATIVE OF LENDING INSTITUTIONS; 4,809
AND ONE PERSON CONSIDERED AN EXPERT IN ENERGY EFFICIENCY OR 4,810
RENEWABLES TECHNOLOGY. INITIAL APPOINTMENTS SHALL BE MADE NOT 4,811
LATER THAN NOVEMBER 1, 1999.
(B) INITIAL TERMS OF SIX OF THE APPOINTED MEMBERS SHALL 4,813
END ON JUNE 30, 2003, AND INITIAL TERMS OF THE REMAINING SEVEN 4,815
APPOINTED MEMBERS SHALL END ON JUNE 30, 2004. THEREAFTER, TERMS 4,816
OF APPOINTED MEMBERS SHALL BE FOR THREE YEARS, WITH EACH TERM 4,817
ENDING ON THE SAME DAY OF THE SAME MONTH AS THE TERM IT SUCCEEDS. 4,818
118
EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF THE MEMBER'S 4,820
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 4,821
APPOINTED. MEMBERS MAY BE REAPPOINTED. 4,822
VACANCIES SHALL BE FILLED IN THE MANNER PROVIDED FOR 4,824
ORIGINAL APPOINTMENTS. ANY MEMBER APPOINTED TO FILL A VACANCY 4,825
OCCURRING PRIOR TO THE EXPIRATION DATE OF THE TERM FOR WHICH THE 4,826
MEMBER'S PREDECESSOR WAS APPOINTED SHALL HOLD OFFICE AS A MEMBER 4,827
FOR THE REMAINDER OF THAT TERM. A MEMBER SHALL CONTINUE IN 4,828
OFFICE AFTER THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE 4,829
MEMBER'S SUCCESSOR TAKES OFFICE OR UNTIL A PERIOD OF SIXTY DAYS 4,830
HAS ELAPSED, WHICHEVER OCCURS FIRST.
(C) BOARD MEMBERS SHALL BE REIMBURSED FOR THEIR ACTUAL AND 4,832
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF BOARD DUTIES. 4,833
SUCH REIMBURSEMENTS CONSTITUTE, AS APPLICABLE, ADMINISTRATIVE 4,834
COSTS OF THE LOW-INCOME CUSTOMER ASSISTANCE PROGRAMS FOR THE 4,835
PURPOSE OF DIVISION (A) OF SECTION 4928.51 OF THE REVISED CODE OR 4,836
ADMINISTRATIVE COSTS OF THE ENERGY EFFICIENCY REVOLVING LOAN 4,837
PROGRAM FOR THE PURPOSE OF DIVISION (A) OF SECTION 4528.61 OF THE 4,838
REVISED CODE.
(D) THE ADVISORY BOARD SHALL SELECT A CHAIRPERSON FROM 4,840
AMONG ITS MEMBERS. ONLY BOARD MEMBERS APPOINTED BY THE GOVERNOR 4,841
WITH THE ADVICE AND CONSENT OF THE SENATE SHALL BE VOTING MEMBERS 4,842
OF THE BOARD; EACH SHALL HAVE ONE VOTE IN ALL DELIBERATIONS OF 4,843
THE BOARD. A MAJORITY OF THE VOTING MEMBERS CONSTITUTE A QUORUM. 4,844
(E) THE DUTIES OF THE ADVISORY BOARD SHALL BE AS FOLLOWS: 4,846
(1) ADVISE THE DIRECTOR IN THE ADMINISTRATION OF THE 4,849
UNIVERSAL SERVICE FUND AND THE LOW-INCOME CUSTOMER ASSISTANCE 4,850
PROGRAMS AND ADVISE THE DIRECTOR ON THE DIRECTOR'S RECOMMENDATION 4,851
TO THE COMMISSION REGARDING THE APPROPRIATE LEVEL OF THE 4,852
UNIVERSAL SERVICE RIDER;
(2) ADVISE THE DIRECTOR ON THE ADMINISTRATION OF THE 4,854
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM AND THE ENERGY 4,855
EFFICIENCY REVOLVING LOAN PROGRAM FUND UNDER SECTIONS 4928.61 TO 4,856
4928.63 OF THE REVISED CODE. 4,857
119
(F) THE ADVISORY BOARD IS NOT AN AGENCY, AS DEFINED IN 4,859
SECTION 101.82 OF THE REVISED CODE, FOR PURPOSES OF DIVISIONS (A) 4,860
AND (B) OF SECTION 101.84 OF THE REVISED CODE. 4,861
Sec. 4928.61. (A) THERE IS HEREBY ESTABLISHED IN THE 4,863
STATE TREASURY AN ENERGY EFFICIENCY REVOLVING LOAN FUND, INTO 4,864
WHICH SHALL BE DEPOSITED ALL ENERGY EFFICIENCY REVENUES REMITTED 4,865
TO THE DIRECTOR OF DEVELOPMENT UNDER DIVISION (B) OF THIS 4,866
SECTION, FOR THE EXCLUSIVE PURPOSES OF FUNDING THE ENERGY 4,867
EFFICIENCY REVOLVING LOAN PROGRAM CREATED UNDER SECTION 4928.62 4,869
OF THE REVISED CODE AND PAYING THE PROGRAM'S ADMINISTRATIVE 4,870
COSTS. INTEREST ON THE FUND SHALL BE CREDITED TO THE FUND. 4,871
(B) ENERGY EFFICIENCY REVENUES SHALL INCLUDE ALL OF THE 4,873
FOLLOWING: 4,874
(1) REVENUES REMITTED TO THE DIRECTOR AFTER COLLECTION BY 4,876
EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE OF A TEMPORARY 4,877
RIDER ON RETAIL ELECTRIC DISTRIBUTION SERVICE RATES AS SUCH RATES 4,878
ARE DETERMINED BY THE PUBLIC UTILITIES COMMISSION PURSUANT TO 4,879
THIS CHAPTER. THE RIDER SHALL BE A UNIFORM AMOUNT STATEWIDE, 4,880
DETERMINED BY THE DIRECTOR OF DEVELOPMENT, AFTER CONSULTATION 4,881
WITH THE PUBLIC BENEFITS ADVISORY BOARD CREATED BY SECTION 4,882
4928.58 OF THE REVISED CODE. THE AMOUNT SHALL BE DETERMINED BY 4,883
DIVIDING AN AGGREGATE REVENUE TARGET FOR A GIVEN YEAR AS 4,884
DETERMINED BY THE DIRECTOR, AFTER CONSULTATION WITH THE ADVISORY
BOARD, BY THE NUMBER OF CUSTOMERS OF ELECTRIC DISTRIBUTION 4,885
UTILITIES IN THIS STATE IN THE PRIOR YEAR. SUCH AGGREGATE 4,886
REVENUE TARGET SHALL NOT EXCEED MORE THAN FIFTEEN MILLION DOLLARS 4,887
IN ANY YEAR THROUGH 2005 AND SHALL NOT EXCEED MORE THAN FIVE 4,888
MILLION DOLLARS IN ANY YEAR AFTER 2005. THE RIDER SHALL BE
IMPOSED BEGINNING ON THE STARTING DATE OF COMPETITIVE RETAIL 4,890
ELECTRIC SERVICE AND SHALL TERMINATE AT THE END OF TEN YEARS 4,891
FOLLOWING THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY
REVOLVING LOAN FUND, INCLUDING INTEREST, REACHES ONE HUNDRED 4,892
MILLION DOLLARS, WHICHEVER IS FIRST. 4,893
(2) REVENUES FROM ENERGY EFFICIENCY REVOLVING LOAN PROGRAM 4,895
120
LOAN REPAYMENTS AND PAYMENTS FROM ENERGY EFFICIENCY REVOLVING 4,896
LOAN PROGRAM LOAN COLLECTIONS PURSUANT TO SECTION 4928.62 OF THE 4,897
REVISED CODE;
(3) ADEQUATE REVENUES REMITTED TO THE DIRECTOR AFTER 4,899
COLLECTION BY A MUNICIPAL ELECTRIC UTILITY OR ELECTRIC 4,900
COOPERATIVE IN THIS STATE NOT EARLIER THAN THE STARTING DATE OF 4,901
COMPETITIVE RETAIL ELECTRIC SERVICE UPON THE UTILITY'S OR 4,902
COOPERATIVE'S DECISION TO PARTICIPATE IN THE ENERGY EFFICIENCY 4,903
REVOLVING LOAN PROGRAM.
(C)(1) EACH ELECTRIC DISTRIBUTION UTILITY IN THIS STATE 4,905
SHALL REMIT TO THE DIRECTOR ON A QUARTERLY BASIS THE REVENUES 4,907
DESCRIBED IN DIVISIONS (B)(1) AND (2) OF THIS SECTION. SUCH 4,908
REMITTANCES SHALL BEGIN WITH THE FIRST QUARTER FOLLOWING THE 4,909
STARTING DATE OF COMPETITIVE RETAIL ELECTRIC SERVICE. 4,910
(2) EACH PARTICIPATING ELECTRIC COOPERATIVE AND 4,912
PARTICIPATING MUNICIPAL ELECTRIC UTILITY SHALL REMIT TO THE 4,913
DIRECTOR ON A QUARTERLY BASIS THE REVENUES DESCRIBED IN DIVISION 4,914
(B)(3) OF THIS SECTION. SUCH REMITTANCES SHALL BEGIN WITH THE 4,915
FIRST QUARTER FOLLOWING THE PARTICIPATING COOPERATIVE'S OR 4,916
UTILITY'S DECISION TO PARTICIPATE. 4,917
(3) ALL REMITTANCES UNDER DIVISIONS (C)(1) AND (2) OF THIS 4,919
SECTION SHALL CONTINUE ONLY UNTIL THE END OF TEN YEARS FOLLOWING 4,920
THAT STARTING DATE OR UNTIL THE ENERGY EFFICIENCY REVOLVING LOAN 4,922
FUND, INCLUDING INTEREST, REACHES ONE HUNDRED MILLION DOLLARS, 4,923
WHICHEVER IS FIRST.
(D) ANY MONEYS COLLECTED IN RATES FOR NON-LOW-INCOME 4,925
CUSTOMER ENERGY EFFICIENCY PROGRAMS, AS OF THE EFFECTIVE DATE OF 4,926
THIS SECTION AND NOT CONTRIBUTED TO THE ENERGY EFFICIENCY 4,927
REVOLVING LOAN FUND UNDER DIVISION (B)(1) OF THIS SECTION, SHALL 4,928
BE USED TO CONTINUE TO FUND COST-EFFECTIVE, RESIDENTIAL ENERGY 4,929
EFFICIENCY PROGRAMS, BE CONTRIBUTED INTO THE UNIVERSAL SERVICE 4,931
FUND AS A SUPPLEMENT TO THAT REQUIRED UNDER SECTION 4928.53 OF 4,932
THE REVISED CODE, OR BE RETURNED TO RATEPAYERS IN THE FORM OF A 4,933
RATE REDUCTION AT THE OPTION OF THE AFFECTED ELECTRIC
121
DISTRIBUTION UTILITY. 4,934
Sec. 4928.62. (A) BEGINNING ON THE STARTING DATE OF 4,936
COMPETITIVE RETAIL ELECTRIC SERVICE, THERE IS HEREBY CREATED THE 4,937
ENERGY EFFICIENCY REVOLVING LOAN PROGRAM, WHICH SHALL BE 4,938
ADMINISTERED BY THE DIRECTOR OF DEVELOPMENT. UNDER THE PROGRAM, 4,939
THE DIRECTOR MAY AUTHORIZE THE USE OF MONEYS IN THE ENERGY 4,940
EFFICIENCY REVOLVING LOAN FUND FOR FINANCIAL ASSISTANCE FOR 4,941
PROJECTS IN THIS STATE. TO THE EXTENT FEASIBLE GIVEN APPROVED 4,942
APPLICATIONS FOR ASSISTANCE, THE ASSISTANCE SHALL BE DISTRIBUTED 4,943
AMONG THE CERTIFIED TERRITORIES OF ELECTRIC DISTRIBUTION
UTILITIES AND PARTICIPATING ELECTRIC COOPERATIVES, AND AMONG THE 4,944
SERVICE AREAS OF PARTICIPATING MUNICIPAL ELECTRIC UTILITIES, IN 4,945
AMOUNTS PROPORTIONATE TO THE REMITTANCES OF EACH UTILITY AND 4,946
COOPERATIVE UNDER DIVISIONS (B)(1) AND (3) OF SECTION 4928.61 OF 4,948
THE REVISED CODE. THE ASSISTANCE SHALL BE MADE OR PROVIDED
THROUGH APPROVED LENDING INSTITUTIONS IN THE FORM OF LOANS AT 4,949
BELOW MARKET RATES, LOAN GUARANTEES FOR SUCH LOANS, AND LINKED 4,950
DEPOSITS FOR SUCH LOANS. THE DIRECTOR SHALL NOT AUTHORIZE 4,952
FINANCIAL ASSISTANCE UNDER THE PROGRAM UNLESS THE DIRECTOR FIRST 4,953
DETERMINES ALL OF THE FOLLOWING:
(1) THE PROJECT WILL INCLUDE AN INVESTMENT IN PRODUCTS, 4,955
TECHNOLOGIES, OR SERVICES, INCLUDING ENERGY EFFICIENCY FOR 4,956
LOW-INCOME HOUSING, FOR RESIDENTIAL, SMALL COMMERCIAL AND SMALL 4,957
INDUSTRIAL BUSINESS, LOCAL GOVERNMENT, EDUCATIONAL INSTITUTION, 4,958
NONPROFIT ENTITY, OR AGRICULTURAL CUSTOMERS OF AN ELECTRIC 4,959
DISTRIBUTION UTILITY IN THIS STATE OR A PARTICIPATING MUNICIPAL 4,960
ELECTRIC UTILITY OR ELECTRIC COOPERATIVE IN THIS STATE. 4,961
(2) THE PROJECT WILL IMPROVE ENERGY EFFICIENCY IN A 4,963
COST-EFFICIENT MANNER BY USING BOTH THE MOST APPROPRIATE 4,964
NATIONAL, FEDERAL, OR OTHER STANDARDS FOR PRODUCTS AS DETERMINED 4,965
BY THE DIRECTOR, AND THE BEST PRACTICES FOR USE OF TECHNOLOGY, 4,966
PRODUCTS, OR SERVICES IN THE CONTEXT OF THE TOTAL FACILITY OR 4,967
BUILDING.
(3) THE PROJECT WILL BENEFIT THE ECONOMIC AND 4,969
122
ENVIRONMENTAL WELFARE OF THE CITIZENS OF THIS STATE. 4,970
(4) THE RECEIPT OF FINANCIAL ASSISTANCE IS A MAJOR FACTOR 4,972
IN THE APPLICANT'S DECISION TO PROCEED WITH OR INVEST IN THE 4,973
PROJECT.
(B) IN CARRYING OUT SECTIONS 4928.61 TO 4928.63 OF THE 4,975
REVISED CODE, THE DIRECTOR MAY DO ALL OF THE FOLLOWING FOR THE 4,977
PURPOSE OF THE ENERGY EFFICIENCY REVOLVING LOAN PROGRAM: 4,978
(1) ACQUIRE IN THE NAME OF THE DIRECTOR ANY PROPERTY OF 4,980
ANY KIND OR CHARACTER IN ACCORDANCE WITH THIS SECTION, BY 4,981
PURCHASE, PURCHASE AT FORECLOSURE, OR EXCHANGE, ON SUCH TERMS AND 4,982
IN SUCH MANNER AS THE DIRECTOR CONSIDERS PROPER; 4,983
(2) MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS 4,985
NECESSARY OR INCIDENTAL TO THE PERFORMANCE OF THE DIRECTOR'S 4,986
DUTIES AND THE EXERCISE OF THE DIRECTOR'S POWERS UNDER THOSE 4,987
SECTIONS;
(3) EMPLOY OR ENTER INTO CONTRACTS WITH FINANCIAL 4,989
CONSULTANTS, MARKETING CONSULTANTS, CONSULTING ENGINEERS, 4,990
ARCHITECTS, MANAGERS, CONSTRUCTION EXPERTS, ATTORNEYS, TECHNICAL 4,991
MONITORS, ENERGY EVALUATORS, OR OTHER EMPLOYEES OR AGENTS AS THE 4,992
DIRECTOR CONSIDERS NECESSARY, AND SHALL FIX THEIR COMPENSATION; 4,993
(4) ADOPT RULES PRESCRIBING THE APPLICATION PROCEDURES FOR 4,995
FINANCIAL ASSISTANCE UNDER THE PROGRAM; THE TERMS AND CONDITIONS 4,996
OF ANY LOANS, LOAN GUARANTEES, LINKED DEPOSITS, AND CONTRACTS; 4,997
CRITERIA PERTAINING TO THE ELIGIBILITY OF PARTICIPATING LENDING 4,998
INSTITUTIONS; AND ANY OTHER MATTERS NECESSARY FOR THE 5,000
IMPLEMENTATION OF THE PROGRAM;
(5) DO ALL THINGS NECESSARY AND APPROPRIATE FOR THE 5,002
OPERATION OF THE PROGRAM. 5,003
(C) FINANCIAL STATEMENTS, FINANCIAL DATA, AND TRADE 5,005
SECRETS SUBMITTED TO OR RECEIVED BY THE DIRECTOR FROM AN 5,006
APPLICANT OR RECIPIENT OF FINANCIAL ASSISTANCE UNDER SECTIONS 5,007
4928.61 TO 4928.63 OF THE REVISED CODE, OR ANY INFORMATION TAKEN 5,008
FROM THOSE STATEMENTS, DATA, OR TRADE SECRETS FOR ANY PURPOSE, 5,009
ARE NOT PUBLIC RECORDS FOR THE PURPOSE OF SECTION 149.43 OF THE 5,010
123
REVISED CODE.
Sec. 4928.63. THE DIRECTOR OF DEVELOPMENT AND THE PUBLIC 5,012
BENEFITS ADVISORY BOARD HAVE THE POWERS AND DUTIES PROVIDED IN 5,014
SECTIONS 4928.61 AND 4928.62 OF THE REVISED CODE, IN ORDER TO 5,015
PROMOTE THE WELFARE OF THE PEOPLE OF THIS STATE, TO STABILIZE THE
ECONOMY, TO ASSIST IN THE IMPROVEMENT AND DEVELOPMENT WITHIN THIS 5,016
STATE OF NOT-FOR-PROFIT ENTITY, INDUSTRIAL, COMMERCIAL, 5,017
DISTRIBUTION, RESIDENTIAL, AND RESEARCH BUILDINGS AND ACTIVITIES 5,018
REQUIRED FOR THE PEOPLE OF THIS STATE, TO IMPROVE THE ECONOMIC 5,019
WELFARE OF THE PEOPLE OF THIS STATE, AND ALSO TO ASSIST IN THE 5,020
IMPROVEMENT OF AIR, WATER, OR THERMAL POLLUTION CONTROL 5,021
FACILITIES AND SOLID WASTE DISPOSAL FACILITIES. IT IS HEREBY 5,022
DETERMINED THAT THE ACCOMPLISHMENT OF THOSE PURPOSES IS ESSENTIAL 5,023
SO THAT THE PEOPLE OF THIS STATE MAY MAINTAIN THEIR PRESENT HIGH 5,024
STANDARDS IN COMPARISON WITH THE PEOPLE OF OTHER STATES AND SO 5,025
THAT OPPORTUNITIES FOR IMPROVING THE ECONOMIC WELFARE OF THE 5,026
PEOPLE OF THIS STATE, FOR IMPROVING THE HOUSING OF RESIDENTS OF 5,027
THIS STATE, AND FOR FAVORABLE MARKETS FOR THE PRODUCTS OF THIS 5,028
STATE'S NATURAL RESOURCES, AGRICULTURE, AND MANUFACTURING SHALL 5,029
BE IMPROVED; AND THAT IT IS NECESSARY FOR THIS STATE TO ESTABLISH 5,030
THE PROGRAM AUTHORIZED PURSUANT TO SECTIONS 4928.61 AND 4928.62 5,031
OF THE REVISED CODE, TO ESTABLISH THE ENERGY EFFICIENCY REVOLVING 5,032
LOAN PROGRAM AND PROGRAM FUND AND THE ENERGY EFFICIENCY REVOLVING 5,033
LOAN PROGRAM ADVISORY BOARD, AND TO VEST THE DIRECTOR AND THE 5,034
BOARD WITH THE POWERS AND DUTIES PROVIDED IN SECTIONS 4928.61 AND 5,035
4928.62 OF THE REVISED CODE.
Sec. 4928.67. (A)(1) BEGINNING ON THE STARTING DATE OF 5,037
COMPETITIVE RETAIL ELECTRIC SERVICE, A RETAIL ELECTRIC SERVICE 5,038
PROVIDER IN THIS STATE SHALL DEVELOP A STANDARD CONTRACT OR 5,039
TARIFF PROVIDING FOR NET ENERGY METERING. ANY TIME THAT THE 5,040
TOTAL RATED GENERATING CAPACITY USED BY CUSTOMER-GENERATORS IS 5,041
LESS THAN ONE PER CENT OF THE PROVIDER'S AGGREGATE CUSTOMER PEAK 5,042
DEMAND IN THIS STATE, THE PROVIDER SHALL MAKE THIS CONTRACT OR 5,043
TARIFF AVAILABLE TO CUSTOMER-GENERATORS, UPON REQUEST AND ON A 5,044
124
FIRST-COME, FIRST-SERVED BASIS. THE CONTRACT OR TARIFF SHALL BE 5,045
IDENTICAL IN RATE STRUCTURE, ALL RETAIL RATE COMPONENTS, AND ANY 5,046
MONTHLY CHARGES, TO THE CONTRACT OR TARIFF TO WHICH THE SAME 5,047
CUSTOMER WOULD BE ASSIGNED IF THAT CUSTOMER WERE NOT A 5,048
CUSTOMER-GENERATOR.
(2) NET METERING UNDER THIS SECTION SHALL BE ACCOMPLISHED 5,050
USING A SINGLE METER CAPABLE OF REGISTERING THE FLOW OF 5,051
ELECTRICITY IN EACH DIRECTION. IF ITS EXISTING ELECTRICAL METER 5,052
IS NOT CAPABLE OF MEASURING THE FLOW OF ELECTRICITY IN TWO 5,053
DIRECTIONS, THE CUSTOMER-GENERATOR SHALL BE RESPONSIBLE FOR ALL 5,054
EXPENSES INVOLVED IN PURCHASING AND INSTALLING A METER THAT IS 5,055
CAPABLE OF MEASURING ELECTRICITY FLOW IN TWO DIRECTIONS. 5,056
(3) SUCH AN ELECTRIC SERVICE PROVIDER, AT ITS OWN EXPENSE 5,058
AND WITH THE WRITTEN CONSENT OF THE CUSTOMER-GENERATOR, MAY 5,059
INSTALL ONE OR MORE ADDITIONAL METERS TO MONITOR THE FLOW OF 5,060
ELECTRICITY IN EACH DIRECTION. 5,061
(B) CONSISTENT WITH THE OTHER PROVISIONS OF THIS SECTION, 5,063
THE MEASUREMENT OF NET ELECTRICITY SUPPLIED OR GENERATED SHALL BE 5,064
CALCULATED IN THE FOLLOWING MANNER: 5,065
(1) THE ELECTRIC SERVICE PROVIDER SHALL MEASURE THE NET 5,067
ELECTRICITY PRODUCED OR CONSUMED DURING THE BILLING PERIOD, IN 5,068
ACCORDANCE WITH NORMAL METERING PRACTICES. 5,069
(2) IF THE ELECTRICITY SUPPLIED BY THE ELECTRIC SERVICE 5,071
PROVIDER EXCEEDS THE ELECTRICITY GENERATED BY THE 5,072
CUSTOMER-GENERATOR AND FED BACK TO THE ELECTRIC SERVICE PROVIDER 5,073
DURING THE BILLING PERIOD, THE CUSTOMER-GENERATOR SHALL BE BILLED 5,074
FOR THE NET ELECTRICITY SUPPLIED BY THE ELECTRIC SERVICE 5,075
PROVIDER, IN ACCORDANCE WITH NORMAL METERING PRACTICES. IF 5,076
ELECTRICITY IS PROVIDED TO THE ELECTRIC SERVICE PROVIDER, THE 5,077
CREDITS FOR THAT ELECTRICITY SHALL APPEAR IN THE NEXT BILLING 5,078
CYCLE.
(C)(1) A NET METERING SYSTEM USED BY A CUSTOMER-GENERATOR 5,080
SHALL MEET ALL APPLICABLE SAFETY AND PERFORMANCE STANDARDS 5,081
ESTABLISHED BY THE NATIONAL ELECTRICAL CODE, THE INSTITUTE OF 5,082
125
ELECTRICAL AND ELECTRONICS ENGINEERS, AND UNDERWRITERS 5,083
LABORATORIES.
(2) THE PUBLIC UTILITIES COMMISSION SHALL ADOPT RULES 5,085
RELATING TO ADDITIONAL CONTROL AND TESTING REQUIREMENTS FOR 5,086
CUSTOMER-GENERATORS WHICH THE COMMISSION DETERMINES ARE NECESSARY 5,087
TO PROTECT PUBLIC AND WORKER SAFETY AND SYSTEM RELIABILITY. 5,088
(D) AN ELECTRIC SERVICE PROVIDER SHALL NOT REQUIRE A 5,090
CUSTOMER-GENERATOR WHOSE NET METERING SYSTEM MEETS THE STANDARDS 5,091
AND REQUIREMENTS PROVIDED FOR IN DIVISIONS (C)(1) AND (D) OF THIS 5,093
SECTION TO DO ANY OF THE FOLLOWING:
(1) COMPLY WITH ADDITIONAL SAFETY OR PERFORMANCE 5,095
STANDARDS;
(2) PERFORM OR PAY FOR ADDITIONAL TESTS; 5,097
(3) PURCHASE ADDITIONAL LIABILITY INSURANCE. 5,099
Sec. 4933.14. (A) Except section 4931.08 of the Revised 5,108
Code AND EXCEPT AS OTHERWISE PROVIDED IN DIVISION (B) OF THIS 5,109
SECTION, sections 4931.01 to 4931.23, inclusive, and 4933.13 to 5,112
4933.16, inclusive, of the Revised Code, apply to companies A 5,114
COMPANY organized for supplying public and private buildings, 5,115
manufacturing establishments, streets, alleys, lanes, lands, 5,116
squares, and public places with electric light and power, and to 5,117
an automatic package carrier. Except as provided by section 5,118
4931.08 of the Revised Code AND EXCEPT AS OTHERWISE PROVIDED IN 5,119
DIVISION (B) OF THIS SECTION, every such company shall have HAS 5,122
the powers and be IS subject to the restrictions prescribed for A 5,124
telegraph companies COMPANY by sections 4931.01 to 4931.23, 5,125
inclusive, of the Revised Code. 5,127
(B) SECTIONS 4931.04, 4931.06, 4931.07, 4931.12, AND 5,129
4931.13 OF THE REVISED CODE APPLY TO A COMPANY ORGANIZED FOR 5,130
SUPPLYING ELECTRICITY ONLY IF THE COMPANY TRANSMITS OR 5,131
DISTRIBUTES ELECTRICITY, AND EVERY SUCH COMPANY HAS THE POWERS
AND IS SUBJECT TO THE RESTRICTIONS PRESCRIBED FOR A TELEGRAPH 5,132
COMPANY BY THOSE SECTIONS EXCEPT FOR THE PURPOSE OF ERECTING, 5,133
OPERATING, OR MAINTAINING AN ELECTRIC GENERATING STATION. 5,134
126
Sec. 4933.15. Any company organized for manufacturing, 5,143
generating, selling, supplying, or transmitting electricity, for 5,145
public and private use, may, for FOR the purpose of making 5,147
preliminary examinations and surveys, ANY COMPANY TRANSMITTING OR 5,148
DISTRIBUTING ELECTRICITY IN THE STATE FOR PUBLIC OR PRIVATE USE 5,149
MAY enter upon any land held by any individual or corporation, 5,151
whether acquired by purchase, appropriation proceedings, or 5,152
otherwise, unless such land is owned by and essential to the 5,153
purposes of another corporation possessing the power of eminent 5,154
domain, and. THE COMPANY ALSO may appropriate so much of such 5,155
land, or any right or interest therein IN THE LAND, including any 5,156
trees, edifices, or buildings thereon ON THE LAND, as is deemed 5,158
necessary for the EITHER OF THE FOLLOWING PURPOSES: 5,160
(A) THE erection, operation, or maintenance of an electric 5,164
plant, including its generating stations, substations, switching 5,165
stations, transmission and distribution lines, poles, towers, 5,166
piers, conduits, cables, AND wires, and other necessary 5,168
structures and appliances, or for rights BUT EXCLUDING ITS 5,170
GENERATING STATIONS;
(B) RIGHTS-of-way over such land and adjacent lands for 5,174
the purpose of access to any part of such land. The 5,176
THE right of appropriation shall be exercised in the same 5,179
manner provided by sections 163.01 to 163.22, inclusive, of the 5,180
Revised Code. 5,181
Sec. 4933.33. Annually, each electric light DISTRIBUTION 5,190
company AS DEFINED IN SECTION 5727.80 OF THE REVISED CODE shall 5,191
cause to appear on each customer bill, or shall distribute to 5,192
each of its customers, the following statement: 5,193
"Under state law, the amount you are being billed includes: 5,195
(1) Gross receipts KILOWATT-HOUR taxes that have been in 5,197
effect since 1969 2001 and are currently at $........%. (The 5,200
current total percentage DOLLAR figure of the total gross 5,201
receipts KILOWATT-HOUR taxes levied in Chapter 5727. BY SECTION 5,203
5727.81 of the Revised Code and any other section of law shall be 5,205
127
placed in the blank); and
(2) Assessments to assist in the support of the operations 5,207
of the PUCO and the office of the consumers' counsel that have 5,208
been in effect since 1912 and 1977, respectively." 5,209
Nothing in this section shall be construed to mean either 5,211
that an electric light DISTRIBUTION company operated not for 5,212
profit or one that is owned or operated by a municipal 5,214
corporation is subject to this section or that an electric light 5,215
company subject to this section may not cause such appearance or 5,216
distribute such statement on a more frequent basis. 5,217
Sec. 4933.81. As used in sections 4933.81 to 4933.90 of 5,226
the Revised Code: 5,227
(A) "Electric supplier" means any electric light company 5,229
as defined in section 4905.03 of the Revised Code, including 5,230
electric light companies organized as nonprofit corporations, but 5,231
not including a municipal corporation CORPORATIONS or other unit 5,233
UNITS of local government that provides PROVIDE electric service. 5,234
(B) "Adequate facilities" means distribution lines or 5,236
facilities having sufficient capacity to meet the maximum 5,237
estimated electric service requirements of its existing customers 5,238
and of any new customer occurring during the year following the 5,239
commencement of permanent electric service, and to assure all 5,240
such customers of reasonable continuity and quality of service. 5,241
Distribution facilities and lines of an electric supplier shall 5,242
be considered "adequate facilities" if such supplier offers to 5,243
undertake to make its distribution facilities and lines meet such 5,244
service requirements and can, in the determination of the public 5,245
utilities commission, CAN do so within a reasonable time. 5,246
(C) "Distribution line" means any electric line having a 5,248
design voltage below thirty-five thousand volts phase to phase 5,249
which THAT is being or has been used primarily to provide 5,250
electric service directly to electric load centers by the owner 5,251
of such line. 5,252
(D) "Existing distribution line" means any distribution 5,254
128
line of an electric supplier which was in existence on January 1, 5,255
1977, or under constructon CONSTRUCTION on such THAT date. 5,257
(E) "Electric load center" means all the 5,259
electric-consuming facilities of any type or character owned, 5,260
occupied, controlled, or used by a person at a single location, 5,261
which facilities have been, are, or will be connected to and 5,262
served at a metered point of delivery and to which electric 5,263
service has been, is, or will be rendered. 5,264
(F) "Electric service" means retail electric service 5,266
furnished to an electric load center for ultimate consumption and 5,267
does not include, BUT EXCLUDES furnishing electric power or 5,269
energy at wholesale for resale. IN THE CASE OF A FOR-PROFIT 5,270
ELECTRIC SUPPLIER AND BEGINNING ON THE STARTING DATE OF 5,272
COMPETITIVE RETAIL ELECTRIC SERVICE AS DEFINED IN SECTION 4928.01 5,273
OF THE REVISED CODE, "ELECTRIC SERVICE" ALSO EXCLUDES A 5,274
COMPETITIVE RETAIL ELECTRIC SERVICE. IN THE CASE OF A 5,275
NOT-FOR-PROFIT ELECTRIC SUPPLIER AND BEGINNING ON THAT STARTING 5,276
DATE, "ELECTRIC SERVICE" ALSO EXCLUDES ANY SERVICE COMPONENT OF
COMPETITIVE RETAIL ELECTRIC SERVICE THAT IS SPECIFIED IN AN 5,278
IRREVOCABLE FILING THE ELECTRIC SUPPLIER MAKES WITH THE PUBLIC 5,279
UTILITIES COMMISSION FOR INFORMATIONAL PURPOSES ONLY TO ELIMINATE 5,280
PERMANENTLY ITS CERTIFIED TERRITORY UNDER SECTIONS 4933.81 TO 5,281
4933.90 OF THE REVISED CODE AS TO THAT SERVICE COMPONENT. THE 5,282
FILING SHALL SPECIFY THE DATE ON WHICH SUCH TERRITORY IS SO 5,283
ELIMINATED. NOTWITHSTANDING DIVISION (B) OF SECTION 4928.01 OF 5,284
THE REVISED CODE, SUCH A SERVICE COMPONENT MAY INCLUDE RETAIL 5,285
ANCILLARY, METERING, OR BILLING AND COLLECTION SERVICE 5,286
IRRESPECTIVE OF WHETHER THAT SERVICE COMPONENT HAS OR HAS NOT
BEEN DECLARED COMPETITIVE UNDER SECTION 4928.04 OF THE REVISED 5,287
CODE. UPON RECEIPT OF THE FILING BY THE COMMISSION, THE 5,288
NOT-FOR-PROFIT ELECTRIC SUPPLIER'S CERTIFIED TERRITORY SHALL BE 5,289
ELIMINATED PERMANENTLY AS TO THE SERVICE COMPONENT SPECIFIED IN 5,290
THE FILING AS OF THE DATE SPECIFIED IN THE FILING. AS USED IN 5,291
THIS DIVISION, "COMPETITIVE RETAIL ELECTRIC SERVICE" AND "RETAIL 5,293
129
ELECTRIC SERVICE" HAVE THE SAME MEANINGS AS IN SECTION 4928.01 OF 5,294
THE REVISED CODE.
(G) "Certified territory" means a geographical area the 5,296
boundaries of which have been established pursuant to sections 5,297
4933.81 to 4933.90 of the Revised Code within which an electric 5,298
supplier is authorized and required to provide electric service. 5,299
(H) "Other unit of local government" means any 5,301
governmental unit or body that may come into existence after the 5,302
effective date of this section JULY 12, 1978, with powers and 5,304
authority similar to those of a municipal corporation, or which 5,305
THAT is created to replace or exercise the relevant powers of any 5,306
one or more municipal corporations. 5,307
Sec. 4935.03. (A) The public utilities commission shall 5,316
adopt, and may amend or rescind, rules in accordance with section 5,317
111.15 of the Revised Code, with the approval of the governor, 5,318
defining various foreseen types and levels of energy emergency 5,319
conditions for critical shortages or interruptions in the supply 5,320
of electric power, natural gas, coal, or individual petroleum 5,321
fuels and specifying appropriate measures to be taken at each 5,322
level or for each type of energy emergency as necessary to 5,323
protect the public health or safety or prevent unnecessary or 5,324
avoidable damage to property. The rules may prescribe different 5,325
measures for each different type or level of declared energy 5,326
emergency, and for any type or level shall empower the governor 5,327
to: 5,328
(1) Restrict the energy consumption of state and local 5,330
government offices and industrial and commercial establishments; 5,331
(2) Restrict or curtail public or private transportation 5,333
or require or encourage the use of car pools or mass transit 5,334
systems; 5,335
(3) Order, during a declared energy emergency, any 5,337
electric light, natural gas or gas, or pipeline company; ANY 5,338
SUPPLIER SUBJECT TO CERTIFICATION UNDER SECTION 4928.08 OF THE 5,339
REVISED CODE; electric power or gas utility that is owned by a 5,341
130
municipal corporation or not for profit; coal producer or 5,342
supplier; ELECTRIC POWER PRODUCER OR MARKETER; or petroleum fuel 5,343
producer, refiner, wholesale distributor, or retail dealer to 5,344
sell electricity, gas, coal, or petroleum fuel in order to 5,345
alleviate hardship, or if possible to acquire or produce 5,346
emergency supplies to meet emergency needs; 5,347
(4) Order, during a declared energy emergency, other 5,349
energy conservation or emergency energy production or 5,350
distribution measures to be taken in order to alleviate hardship; 5,351
(5) Mobilize emergency management, national guard, law 5,353
enforcement, or emergency medical services. 5,354
The rules shall be designed to protect the public health 5,356
and safety and prevent unnecessary or avoidable damage to 5,357
property. They shall encourage the equitable distribution of 5,358
available electric power and fuel supplies among all geographic 5,359
regions in the state. 5,360
(B) The governor may, after consultation with the chairman 5,362
of the commission, declare an energy emergency by filing with the 5,363
secretary of state a written declaration of an energy emergency 5,364
at any time he finds that the health, safety, or welfare of the 5,365
residents of this state or of one or more counties of this state 5,366
is so imminently and substantially threatened by an energy 5,367
shortage that immediate action of state government is necessary 5,368
to prevent loss of life, protect the public health or safety, and 5,369
prevent unnecessary or avoidable damage to property. The 5,370
declaration shall state the counties, utility service areas, or 5,371
fuel market areas affected, or its statewide effect, and what 5,372
fuels or forms of energy are in critically short supply. An 5,373
energy emergency goes into immediate effect upon filing and 5,374
continues in effect for the period prescribed in the declaration, 5,375
but not more than thirty days. At the end of any thirty-day or 5,376
shorter energy emergency, the governor may issue another 5,377
declaration extending the emergency. The general assembly may by 5,378
concurrent resolution terminate any declaration of an energy 5,379
131
emergency. The emergency is terminated at the time of filing of 5,380
the concurrent resolution with the secretary of state. When an 5,381
energy emergency is declared, the commission shall implement the 5,382
measures which it determines are appropriate for the type and 5,383
level of emergency in effect. 5,384
(C) Energy emergency orders issued by the governor 5,386
pursuant to this section shall take effect immediately upon 5,387
issuance, and the person to whom the order is directed shall 5,388
initiate compliance measures immediately upon receiving the 5,389
order. During an energy emergency the attorney general or the 5,390
prosecuting attorney of the county where violation of a rule 5,391
adopted or order issued under this section occurs may bring an 5,392
action for immediate injunction or other appropriate relief to 5,393
secure prompt compliance. The court may issue an ex parte 5,394
temporary order without notice which shall enforce the 5,395
prohibitions, restrictions, or actions that are necessary to 5,396
secure compliance with the rule or order. Compliance with rules 5,397
or orders issued under this section is a matter of statewide 5,398
concern. 5,399
(D) During a declared energy emergency the governor may 5,401
use the services, equipment, supplies, and facilities of existing 5,402
departments, offices, and agencies of the state and of the 5,403
political subdivisions thereof to the maximum extent practicable 5,404
and necessary to meet the energy emergency, and the officers and 5,405
personnel of all such departments, offices, and agencies shall 5,406
cooperate with and extend such services and facilities to the 5,407
governor upon request. 5,408
(E) During an energy emergency declared under this 5,410
section, no person shall violate any rule adopted or order issued 5,411
under this section. Whoever violates this division is guilty of 5,412
a minor misdemeanor on a first offense, and a misdemeanor of the 5,413
first degree upon subsequent offenses or if the violation was 5,414
purposely committed. 5,415
Sec. 4935.04. (A) As used in this chapter: 5,424
132
(1) "Major utility facility" means: 5,426
(a) An electric generating plant and associated facilities 5,428
designed for, or capable of, operation at a capacity of fifty 5,429
megawatts or more; 5,430
(b) An electric transmission line and associated 5,432
facilities of a design capacity of one hundred twenty-five 5,433
kilovolts or more; 5,434
(c)(b) A gas or natural gas transmission line and 5,436
associated facilities designed for, or capable of, transporting 5,437
gas or natural gas at pressures in excess of one hundred 5,438
twenty-five pounds per square inch. 5,439
"Major utility facility" does not include electric, gas, or 5,441
natural gas distributing lines and gas or natural gas gathering 5,442
lines and associated facilities as defined by the public 5,443
utilities commission; facilities owned or operated by industrial 5,445
firms, persons, or institutions that produce or transmit gas, OR 5,446
natural gas, or electricity primarily for their own use or as a 5,448
byproduct of their operations; gas or natural gas transmission 5,449
lines and associated facilities over which an agency of the 5,450
United States has certificate jurisdiction; facilities owned or 5,451
operated by a person furnishing gas or natural gas directly to
fifteen thousand or fewer customers within this state. 5,452
(2) "Person" has the meaning set forth in section 4906.01 5,454
of the Revised Code. 5,455
(B) Each person owning or operating a gas or natural gas 5,457
transmission line and associated facilities within this state 5,458
over which an agency of the United States has certificate 5,459
jurisdiction shall furnish to the commission a copy of the energy 5,460
information filed by the person with that agency of the United 5,462
States.
(C) Each person owning or operating a major utility 5,464
facility within this state, or furnishing gas, natural gas, or 5,466
electricity directly to more than fifteen thousand customers 5,468
within this state annually shall furnish a report to the 5,469
133
commission for its review. The report shall be termed the 5,471
long-term forecast report and shall contain: 5,472
(1) A year-by-year, ten-year forecast of annual energy 5,474
demand, peak load, reserves, and a general description of the 5,475
resource plan to meet demand; 5,476
(2) A range of projected loads during the period; 5,478
(3) A description of major utility facilities planned to 5,480
be added or taken out of service in the next ten years, including 5,481
prospective sites for generating plants and, to the extent the 5,482
information is available, PROSPECTIVE SITES for transmission line 5,483
locations; 5,484
(4) For gas and natural gas, a projection of anticipated 5,486
supply, supply prices, and sources of supply over the forecast 5,487
period; 5,488
(5) For electricity, a range of projected loads and a 5,490
projection of annual energy demand, anticipated generating 5,491
capacity, and system seasonal peak demand for a twenty-year 5,492
period; 5,493
(6) A description of proposed changes in the transmission 5,495
system planned for the next five years; 5,496
(7)(6) A month-by-month forecast of both energy demand and 5,498
peak load for electric utilities, and gas sendout for gas and 5,499
natural gas utilities, for the next two years. The report shall 5,500
describe the major utility facilities that, in the judgment of 5,502
such person, will be required to supply system demands during the 5,503
forecast period. The report from a gas or natural gas utility 5,504
shall cover the ten- and five-year periods next succeeding the 5,505
date of the report, and the report from an electric utility shall 5,506
cover the twenty-, ten-, and five-year periods next succeeding 5,507
the date of the report. Each report shall be made available to 5,508
the public and furnished upon request to municipal corporations 5,509
and governmental agencies charged with the duty of protecting the 5,510
environment or of planning land use. The report shall be in such 5,511
form and shall contain such information as may be prescribed by 5,512
134
the commission. 5,513
Each person not owning or operating a major utility 5,515
facility within this state and serving fifteen thousand or fewer 5,517
gas, OR natural gas, or electric customers within this state 5,519
shall furnish such information as the commission may require 5,520
REQUIRES.
(D) The commission shall: 5,522
(1) Review and comment on the reports filed under division 5,524
(C) of this section, and make the information contained therein 5,525
IN THE REPORTS readily available to the public and other 5,527
interested government agencies; 5,528
(2) Compile and publish each year the general locations of 5,530
the proposed power plant sites and general locations of proposed 5,531
and existing transmission line routes within its jurisdiction as 5,532
identified in the reports filed under division (C) of this 5,533
section, identifying the general location of such sites and 5,534
routes and the approximate year when construction is expected to 5,535
commence, and to make such information readily available to the 5,536
public, to each newspaper of daily or weekly circulation within 5,537
the area affected by the proposed site and route, and to 5,538
interested federal, state, and local agencies; 5,539
(3) Hold a public hearing: 5,541
(a) On the first long-term forecast report filed after 5,543
January 11, 1983; 5,544
(b) At least once in every five years, on the latest 5,546
report furnished by any person subject to this section; 5,547
(c) On the latest report furnished by any person subject 5,549
to this section if the report contains a substantial change from 5,550
the preceding report furnished by that person. "Substantial 5,551
change" includes, but is not limited to: 5,552
(i) The addition or cancellation of a generating facility 5,554
of fifty megawatts or more in the report furnished pursuant to 5,555
division (C) of this section; 5,556
(ii) A change in forecasted peak loads or energy 5,558
135
consumption over the forecast period of greater than an average 5,559
of one-half of one per cent per year; 5,560
(iii)(ii) Demonstration of good cause to the commission by 5,562
an interested party. 5,563
The commission shall fix a time for the hearing, which 5,565
shall be not later than ninety days after the report is filed, 5,566
and publish notice of the date, time of day, and location of the 5,567
hearing in a newspaper of general circulation in each county in 5,568
which the person furnishing the report has or intends to locate a 5,569
major utility facility and will provide service during the period 5,570
covered by the report. The notice shall be published not less 5,571
than fifteen nor more than thirty days before the hearing and 5,572
shall state the matters to be considered. 5,573
Absent a showing of good cause, the commission shall not 5,575
hold hearings under division (D)(3) of this section with respect 5,576
to persons who, as the primary purpose of their business, furnish 5,577
gas, OR natural gas, or electricity directly to fifteen thousand 5,579
or fewer customers within this state solely for direct 5,580
consumption by those customers. 5,581
(4) Require such information from persons subject to its 5,583
jurisdiction as necessary to assist in the conduct of hearings 5,584
and any investigation or studies it may undertake; 5,585
(5) Conduct any studies or investigations that are 5,587
necessary or appropriate to carry out its responsibilities under 5,588
this section. 5,589
(E)(1) The scope of the hearing held under division (D)(3) 5,591
of this section shall be limited to issues relating to 5,592
forecasting. The power siting board, the office of consumers' 5,593
counsel, and all other persons having an interest in the 5,594
proceedings shall be afforded the opportunity to be heard and to 5,595
be represented by counsel. The commission may adjourn the 5,596
hearing from time to time. 5,597
(2) The hearing shall include, but not be limited to, a 5,599
review of: 5,600
136
(a) The projected loads and energy requirements for each 5,602
year of the period; 5,603
(b) The estimated installed capacity and supplies to meet 5,605
the projected load requirements. 5,606
(F) Based upon the report furnished pursuant to division 5,608
(C) of this section and the hearing record, the commission, 5,609
within ninety days from the close of the record in the hearing, 5,610
shall determine if: 5,611
(1) All information relating to current activities, 5,613
facilities agreements, and published energy policies of the state 5,614
has been completely and accurately represented; 5,615
(2) The load requirements are based on substantially 5,617
accurate historical information and adequate methodology; 5,618
(3) The forecasting methods consider the relationships 5,620
between price and energy consumption; 5,621
(4) The report identifies and projects reductions in 5,623
energy demands due to energy conservation measures in the 5,624
industrial, commercial, residential, transportation, and energy 5,625
production sectors in the service area; 5,626
(5) Utility company forecasts of loads and resources are 5,628
reasonable in relation to population growth estimates made by 5,629
state and federal agencies, transportation, and economic 5,630
development plans and forecasts, and make recommendations where 5,631
possible for necessary and reasonable alternatives to meet 5,632
forecasted electric power demand; 5,633
(6) The report considers plans for expansion of the 5,635
regional power grid and the planned facilities of other utilities 5,636
in the state; 5,637
(7) All assumptions made in the forecast are reasonable 5,639
and adequately documented. 5,640
(G) The commission shall adopt rules under section 111.15 5,642
of the Revised Code to establish criteria for evaluating the 5,643
long-term forecasts of needs for gas and electric power 5,644
TRANSMISSION SERVICE, to conduct hearings held under this 5,645
137
section, to establish reasonable fees to defray the direct cost 5,647
of the hearings and the review process, and such other rules as 5,648
are necessary and convenient to implement this section. 5,649
(H) The hearing record produced under this section and the 5,651
determinations of the commission shall be introduced into 5,652
evidence and shall be considered in determining the basis of need 5,653
for power siting board deliberations under division (A)(1) of 5,654
section 4906.10 of the Revised Code. The hearing record produced 5,655
under this section shall be introduced into evidence and shall be 5,656
considered by the public utilities commission in its initiation 5,657
of programs, examinations, AND findings, investigations, and 5,658
remedies under section 4905.70 of the Revised Code, and shall be 5,660
considered in their THE COMMISSION'S determinations with respect 5,661
to the establishment of just and reasonable rates under section 5,663
4909.15 of the Revised Code and financing utility facilities and 5,664
authorizing issuance of all securities under sections 4905.40, 5,665
4905.401, 4905.41, and 4905.42 of the Revised Code. The forecast 5,666
findings also shall serve as the basis for all other energy 5,668
planning and development activities of the state government where 5,669
electric and gas data are required. 5,670
(I)(1) No court other than the supreme court shall have 5,672
power to review, suspend, or delay any determination made by the 5,673
commission under this section, or enjoin, restrain, or interfere 5,674
with the commission in the performance of official duties. A 5,675
writ of mandamus shall not be issued against the commission by 5,676
any court other than the supreme court. 5,677
(2) A final determination made by the commission shall be 5,679
reversed, vacated, or modified by the supreme court on appeal, 5,680
if, upon consideration of the record, such court is of the 5,681
opinion that such determination was unreasonable or unlawful. 5,682
The proceeding to obtain such reversal, vacation, or 5,684
modification shall be by notice of appeal, filed with the 5,685
commission by any party to the proceeding before it, against the 5,686
commission, setting forth the determination appealed from and 5,687
138
errors complained of. The notice of appeal shall be served, 5,688
unless waived, upon the commission by leaving a copy at the 5,689
office of the chairman CHAIRPERSON of the commission at Columbus. 5,691
The court may permit an interested party to intervene by 5,692
cross-appeal.
(3) No proceeding to reverse, vacate, or modify a 5,694
determination of the commission is commenced unless the notice of 5,695
appeal is filed within sixty days after the date of the 5,696
determination. 5,697
Sec. 5117.01. (A) As used in this chapter SECTIONS 5,706
5117.01 TO 5117.12 OF THE REVISED CODE: 5,707
(1)(A) "Credit" means the credit on utility heating bills 5,709
granted under division (A) of section 5117.09 of the Revised 5,710
Code. 5,711
(2)(B) "Current monthly bill" means the amount charged for 5,713
energy consumed in the most recent monthly billing period and 5,714
does not include any past due balance. 5,715
(3)(C) "Current total income" means the adjusted gross 5,717
income of the head of household and the person's spouse for the 5,719
six-month period beginning the first day of January and ending 5,720
the thirtieth day of June of the year in which an application is 5,721
made, as determined under the "Internal Revenue Code of 1954," 5,722
68A Stat. 3, 26 U.S.C. 1, as amended, minus the amount of 5,723
disability benefits included in adjusted gross income but not to 5,724
exceed twenty-six hundred dollars, plus old age and survivors 5,725
benefits received pursuant to the "Social Security Act," 5,726
retirement, pension, annuity, or other retirement payments or 5,727
benefits not included in federal adjusted gross income; payments 5,728
received pursuant to the "Railroad Retirement Act," 50 Stat. 307, 5,729
45 U.S.C. 228, and interest on federal, state, and local 5,730
government obligations. Disability benefits paid by the veterans 5,731
administration or a branch of the armed forces of the United 5,732
States on account of an injury or disability are not included in 5,733
current total income. 5,734
139
(4)(D) "Energy company" means every retail propane dealer 5,736
that distributes propane by pipeline, and every electric light, 5,737
rural electric, gas, or natural gas company. 5,738
(5)(E) "Energy dealer" means every retail dealer of fuel 5,740
oil, propane, coal, wood, and kerosene. 5,741
(6)(F) "Head of household" means a person who occupies a 5,743
household as the person's homestead and who is financially 5,744
responsible for its other occupants, if any, or the spouse of 5,746
such a person if both occupy the same household. No person is a 5,747
head of household if the person occupies a household for the 5,748
taxable year prior to the year in which an application is filed 5,750
and was claimed as a dependent on the federal income tax return 5,751
of another occupant of the same household and was not the 5,752
taxpayer's spouse or if the person could have been claimed if 5,754
such a return had been filed for such year and was not the other 5,755
occupant's spouse.
(7)(G) "Household" means any dwelling unit, including a 5,757
unit in a multiple unit dwelling, a manufactured home, or a 5,759
mobile home, to which utility heating services or energy 5,761
commodities are provided.
(8)(H) "Payment" means the one hundred twenty-five-dollar 5,763
payment provided under division (A) of section 5117.10 of the 5,764
Revised Code. 5,765
(9)(I) "Permanently and totally disabled" refers to a 5,767
person who has, on the first day of July of the year an 5,768
application is made, some impairment in body or mind that makes 5,769
the person unfit to work at any substantially remunerative 5,771
employment that the person would otherwise be reasonably able to 5,773
perform and that will, with reasonable probability, continue for 5,774
an indefinite period of at least twelve months without any 5,775
present indication of recovery therefrom, or who has been 5,776
certified as permanently and totally disabled by a state or 5,777
federal agency having the function of so classifying persons. 5,778
(10)(J) "Sixty-five years of age or older" refers to a 5,780
140
person who has attained age sixty-four prior to the first day of 5,781
January of the year of AN application for reduction in utility 5,782
charges IS MADE. 5,783
(11)(K) "Total income" means the adjusted gross income of 5,785
the head of household and the person's spouse for the year 5,787
preceding the year in which an application is made, as determined 5,788
under the "Internal Revenue Code of 1954," 68A Stat. 3, 26 U.S.C. 5,789
1, as amended, minus the amount of disability benefits included 5,790
in adjusted gross income but not to exceed fifty-two hundred 5,791
dollars, plus old age and survivors benefits received pursuant to 5,792
the "Social Security Act," retirement, pension, annuity, or other 5,793
retirement payments or benefits not included in federal adjusted 5,794
gross income; payments received pursuant to the "Railroad 5,795
Retirement Act," 50 Stat. 307, 45 U.S.C. 228; and interest on 5,796
federal, state, and local government obligations. Disability 5,797
benefits paid by the veteran's administration DEPARTMENT OF 5,798
VETERANS AFFAIRS or a branch of the armed forces of the United 5,800
States on account of an injury or disability shall not be 5,801
included in total income.
(B) As used in sections 5117.01 to 5117.12 of the Revised 5,803
Code: 5,804
(1) "Applicant" means any person who has submitted an 5,806
application under division (C) of section 5117.03 of the Revised 5,807
Code. 5,808
(2) "Application" means the application in section 5117.03 5,810
of the Revised Code. 5,811
(3) "Program" means the Ohio energy credit program 5,813
established under sections 5117.01 to 5117.12 of the Revised 5,814
Code. 5,815
(4)(L) "Purchased power costs" means charges for the costs 5,817
of power purchased by an electric light company under Chapters 5,818
4905. and 4909. of the Revised Code and includes charges 5,819
resulting from the exchange of electric power. 5,820
Sec. 5117.02. (A) The tax commissioner DIRECTOR OF 5,829
141
DEVELOPMENT shall adopt rules, or amendments and rescissions of 5,831
rules, PURSUANT TO SECTION 4928.52 OF THE REVISED CODE, for the 5,832
administration of THE OHIO ENERGY CREDIT PROGRAM UNDER sections 5,833
5117.01 to 5117.12 of the Revised Code. 5,834
(B) As a means of efficiently administering the program 5,836
established by sections 5117.01 to 5117.12 of the Revised Code, 5,837
the tax commissioner DIRECTOR may extend, by as much as a total 5,838
of thirty days, any date specified in such sections for the 5,840
performance of a particular action by an individual or an 5,841
officer.
(C)(1) Except as provided in division (C)(2) of this 5,843
section, the tax commissioner DIRECTOR shall ADOPT, in accordance 5,845
with divisions (A), (B), (C), (D), (E), and (H) of section 119.03 5,846
and section 119.04 of the Revised Code, adopt whatever rules, or 5,847
amendments or rescissions of rules are required by or are 5,848
otherwise necessary to implement sections 5117.01 to 5117.12 of 5,849
the Revised Code. A rule, amendment, or rescission adopted under 5,850
this division is not exempt from the hearing requirements of 5,851
section 119.03 of the Revised Code pursuant to division (G) of 5,852
that section, or subject to section 111.15 or 5703.14 of the 5,853
Revised Code. 5,854
(2) If an emergency necessitates the immediate adoption of 5,856
a rule, or the immediate adoption of an amendment or rescission 5,857
of a rule that is required by or otherwise necessary to implement 5,858
sections 5117.01 to 5117.12 of the Revised Code, the tax 5,860
commissioner may DIRECTOR immediately MAY adopt the emergency 5,862
rule, amendment, or rescission without complying with division 5,864
(A), (B), (C), (D), (E), or (H) of section 119.03 of the Revised 5,865
Code so long as he THE DIRECTOR states the reasons for the 5,866
necessity in the emergency rule, amendment, or rescission. The 5,867
emergency rule, amendment, or rescission is effective on the day 5,868
copies of the emergency rule, amendment, or rescission, in final 5,869
form and in compliance with division (A)(2) of section 119.04 of 5,870
the Revised Code, are filed as follows: two certified copies of 5,871
142
the emergency rule, amendment, or rescission shall be filed with 5,872
both the secretary of state and the director of the legislative 5,873
service commission, and one certified copy of the emergency rule, 5,874
amendment, or rescission shall be filed with the joint committee 5,875
on agency rule review. If all copies are not filed on the same 5,876
day, the emergency rule, amendment, or rescission is effective on 5,877
the day on which the latest filing is made. An emergency rule, 5,878
amendment, or rescission adopted under this division is not 5,879
subject to section 111.15, OR division (F) of section 119.03, or 5,881
section 5703.14 of the Revised Code. An emergency rule,
amendment, or rescission adopted under this division continues in 5,882
effect until amended or rescinded by the tax commissioner 5,884
DIRECTOR in accordance with division (C)(1) or (2) of this 5,885
section, except that the rescission of an emergency rescission 5,886
does not revive the rule rescinded. 5,887
(D) Except where otherwise provided, each form, 5,889
application, notice, and the like used in fulfilling the 5,890
requirements of sections 5117.01 to 5117.12 of the Revised Code 5,891
shall be approved by the tax commissioner DIRECTOR. 5,892
Sec. 5117.03. (A)(1) The tax commissioner DIRECTOR OF 5,901
DEVELOPMENT shall prescribe the form of THE application FOR 5,903
ASSISTANCE UNDER THE OHIO ENERGY CREDIT PROGRAM. The application 5,904
shall be in the form of a signed statement, shall require no more 5,905
information than is necessary to establish an applicant's 5,906
eligibility under section 5117.07 of the Revised Code, and shall 5,907
be clear and concise in its format, requirements, and 5,908
instructions. The form shall request the following information: 5,909
(a) The name and address of the applicant; 5,911
(b) The type of energy or commodity that is the source of 5,913
the heat produced by the primary heating system in the residence 5,914
of the applicant; 5,915
(c) The name of the energy company or energy dealer that 5,917
supplies the energy or commodity that is the source of the heat 5,918
produced by the primary heating system in the residence of the 5,919
143
applicant and, if the applicant receives his THE APPLICANT'S 5,920
energy from a company, the applicant's account number; 5,921
(d) The applicant's total income or current total income; 5,923
(e) In the case of an application based upon physical 5,925
disability, a certification signed by a physician, in the case of 5,926
an application based upon mental disability, a certification 5,927
signed by a physician or psychologist, or in the case of either 5,928
such disability, a certification from a state or federal agency 5,929
having the function of so classifying persons; 5,930
(f) The age of the applicant; 5,932
(g) Any other information required to make eligibility 5,934
determinations under section 5117.07 of the Revised Code. 5,935
Each form shall contain a statement that signing such 5,937
application constitutes a delegation of authority by the 5,938
applicant to the commissioner DIRECTOR to examine any financial 5,939
records that relate to income earned by the applicant as stated 5,941
on the application for the purpose of determining eligibility 5,942
under section 5117.07 of the Revised Code and possible violation 5,943
of division (B) of section 5117.11 of the Revised Code. 5,944
(2) The tax commissioner DIRECTOR shall mail or otherwise 5,946
provide an application form to each person requesting such form. 5,948
(B)(1) The tax commissioner DIRECTOR shall devise and 5,950
prescribe an application renewal form on which the head of 5,952
household may indicate by check mark that he THE HEAD OF 5,953
HOUSEHOLD received a credit or payment for the preceding heating 5,955
season. Application renewal forms shall seek from persons 5,956
applying on such basis a certification by the applicant attesting 5,957
to his THE APPLICANT'S permanent and total disability and the 5,958
name of a physician, psychologist, or government agency willing 5,959
to provide an additional certification if so requested under 5,960
division (D) of section 5117.07 of the Revised Code. Such forms 5,961
shall also include such other information as the tax commissioner 5,962
DIRECTOR requires and shall be clear and concise in format, 5,964
requirements, and instructions. 5,965
144
(2) On or before the fifteenth day of June, the tax 5,967
commissioner DIRECTOR shall mail or otherwise provide an 5,968
application renewal form to each head of household who received a 5,970
credit or payment during the preceding heating season. 5,971
(3) Application renewal forms shall be reviewed and 5,973
disposed of in the same manner provided for application forms in 5,974
section 5117.07 of the Revised Code. 5,975
(C) Applications and application renewal forms shall be 5,977
returned to the tax commissioner DIRECTOR no later than the first 5,979
day of September. If an applicant is determined eligible for a 5,980
credit under division (A)(1) of section 5117.07 of the Revised 5,981
Code and the applicant's account number is not provided on the 5,982
application form pursuant to division (A)(1)(c) of this section, 5,983
the tax commissioner DIRECTOR shall make a good faith effort to 5,984
acquire such number before certifying the applicant's eligibility 5,986
to an energy company under section 5117.08 of the Revised Code. 5,987
The tax commissioner DIRECTOR may request an energy company to 5,988
assist in efforts to acquire an applicant's account number and, 5,990
if so requested, a company shall cooperate in such efforts. 5,991
Sec. 5117.04. (A) Every energy company and energy dealer 6,000
shall, at least once during June, and once during August, SHALL 6,001
begin to distribute to each of its residential heating customers 6,003
a plain and clear notice, printed in ten-point type on a sheet or 6,004
card on which no other words appear on either the front or back, 6,005
that states the right of qualified residential customers to 6,006
receive a credit or payment UNDER THE OHIO ENERGY CREDIT PROGRAM 6,008
and that explains in detail, in a fashion reasonably calculated 6,009
to inform, the relevant mechanisms established under sections 6,010
5117.01 to 5117.12 of the Revised Code to effectuate that right. 6,011
The notice shall also contain, in ten-point boldface type, the 6,012
following statement: "The right of eligible customers to receive 6,013
a credit against utility bills or a payment for energy bills is 6,014
provided in legislation (House Bill 657) passed by the General 6,015
Assembly and signed by the Governor."
145
(B) The tax commissioner DIRECTOR OF DEVELOPMENT shall 6,017
cause to be printed notices of the type specified in division (A) 6,019
of this section and application forms in sufficient quantity for 6,020
distribution. The tax commissioner DIRECTOR shall maintain a 6,021
system for distributing application forms to appropriate public 6,023
locations. The distribution system shall be designed to make 6,024
application forms available to as many qualified persons as 6,025
possible.
(C) The tax commissioner DIRECTOR shall arrange for the 6,027
establishment of a toll-free telephone number to enable all 6,028
persons in this state to make inquiries and obtain information 6,029
concerning the credits or payments. 6,030
Sec. 5117.05. The tax commissioner DIRECTOR OF 6,039
DEVELOPMENT, in consultation with the commission on 6,040
Hispanic-Latino affairs, shall develop an outreach program, 6,042
including Spanish-speaking communication formats, designed to 6,043
make all Spanish-speaking persons who meet the eligibility 6,044
requirements for participation in the Ohio energy credit program 6,045
aware of the nature and extent of available benefits and methods 6,046
for acquiring and making applications. The program shall include
assistance to such persons in making applications. The 6,047
commissioner DIRECTOR shall implement the program in cooperation 6,049
with the commission on Hispanic-Latino affairs. 6,050
Sec. 5117.07. (A) On or before the first day of October, 6,059
the tax commissioner DIRECTOR OF DEVELOPMENT shall review all 6,060
applications submitted under division (C) of section 5117.03 of 6,062
the Revised Code and shall determine the eligibility of each 6,063
applicant to receive a credit or payment. 6,064
(1) An applicant is eligible for a credit of thirty per 6,066
cent if the applicant is a head of household, has a total income 6,067
of five thousand dollars or less or a current total income of two 6,068
thousand five hundred dollars or less, owns and occupies or rents 6,069
and occupies a household receiving the source of energy for its 6,070
primary heating system from an energy company and such energy is 6,071
146
separately metered, and is either of the following: 6,072
(a) Sixty-five years of age or older; 6,074
(b) Permanently and totally disabled. 6,076
(2) An applicant is eligible for a credit of twenty-five 6,078
per cent if the applicant is a head of household, has a total 6,079
income of more than five thousand dollars but not more than nine 6,080
thousand dollars or a current total income of more than two 6,081
thousand five hundred dollars but not more than four thousand 6,082
five hundred dollars, is sixty-five years of age or older or 6,083
permanently and totally disabled, and owns and occupies or rents 6,084
and occupies a household receiving the source of energy for its 6,085
primary heating system from an energy company and such energy is 6,086
separately metered. 6,087
(3) An applicant is eligible for a payment if either of 6,089
the following applies to the applicant: 6,090
(a) He THE APPLICANT would be eligible for the credit 6,092
under division (A)(1) or (2) of this section but for the fact 6,094
that the source of energy for the primary heating system of the 6,095
applicant's household is not separately metered; 6,096
(b) He THE APPLICANT is a head of household, has a total 6,098
income of no more than nine thousand dollars or a current total 6,100
income of no more than four thousand five hundred dollars, is 6,101
sixty-five years of age or older or permanently and totally 6,102
disabled, and owns and occupies or rents and occupies a household 6,103
receiving the source of energy for its primary heating system 6,104
from an energy dealer.
(4) In the case of a multiple unit dwelling for which 6,106
separate metering for the source of energy for its primary 6,107
heating system is not provided, more than one applicant occupying 6,108
such dwelling may be determined eligible for a payment under 6,109
division (A)(3)(a) of this section. 6,110
(B) Notwithstanding division (A) of this section: 6,112
(1) No head of household who resides in public housing or 6,114
receives a rent subsidy from a government agency is eligible for 6,115
147
a credit or payment unless the person's rent subsidy does not 6,116
reflect the costs of his THAT PERSON'S household receiving the 6,117
source of energy for its primary heating system; 6,119
(2) A resident of a nursing home, hospital, or other 6,121
extended health care facility is not eligible for a credit or 6,122
payment for the costs of providing the source of energy for the 6,123
primary heating system of the facility. 6,124
(C) The tax commissioner DIRECTOR shall establish a 6,127
procedure whereby he THE DIRECTOR can verify total income and 6,128
current total income for the calendar year in which an applicant 6,130
is determined eligible for a payment or credit. If a person 6,131
receives a credit or payment that he THE PERSON is ineligible to 6,132
receive under division (A) of this section AS DETERMINED BY THE 6,134
DIRECTOR, that person shall refund to the tax commissioner 6,135
DIRECTOR the credit or payment, or excess portion of a credit or 6,136
payment, he THAT PERSON received. The sum refunded shall be 6,137
deposited in the state treasury to the credit of the general 6,139
revenue fund UNIVERSAL SERVICE FUND CREATED IN SECTION 4928.51 OF 6,140
THE REVISED CODE.
(D) The tax commissioner DIRECTOR may request an 6,142
additional certification of permanent and total disability for 6,143
any applicant claiming such status on an application renewal form 6,144
submitted under section 5117.03 of the Revised Code. Such 6,145
certification shall be requested from the person or agency named 6,146
on the form pursuant to division (B)(1) of section 5117.03 of the 6,147
Revised Code. If such additional certification is refused due to 6,148
a conclusion by the person or agency that the applicant is not 6,149
permanently and totally disabled, the commissioner DIRECTOR shall 6,151
determine the applicant ineligible for any credit or payment. If 6,152
such additional certification is unavailable or refused for any 6,153
other reason, the tax commissioner DIRECTOR may determine the 6,154
applicant to be eligible for a credit or payment provided he THE 6,156
DIRECTOR has good cause to believe the applicant is permanently 6,158
and totally disabled.
148
(E) On or before the first day of October, the tax 6,160
commissioner DIRECTOR shall notify each applicant of the 6,161
disposition of his THE APPLICANT'S application under divisions 6,163
(A) and (B) of this section. At the same time, he THE DIRECTOR 6,165
shall notify the applicant, regardless of whether his THE 6,167
APPLICANT'S application is approved or disapproved, that the 6,168
applicant may be eligible to participate in a state or federal 6,169
weatherization program and should contact his THE APPLICANT'S 6,170
community action agency for further information. If an 6,172
application is disapproved, the applicant may appeal to the tax 6,173
commissioner DIRECTOR for a hearing on the matter. A notice of 6,175
disapproval shall include a detailed explanation of the 6,176
applicant's right of appeal under this chapter. Any such appeal 6,177
shall be on an appeal form prescribed by the tax commissioner 6,178
DIRECTOR and shall be filed with the tax commissioner DIRECTOR 6,180
within twenty days of the receipt of the notice of disapproval. 6,182
Sec. 5117.08. (A)(1) On or before the tenth day of 6,191
October, the tax commissioner DIRECTOR OF DEVELOPMENT shall begin 6,193
to prepare and certify to each energy company that provides 6,194
energy for home heating a list containing the name and account 6,195
number of each head of household determined eligible for a credit 6,196
under divisions (A) and (B) of section 5117.07 of the Revised 6,197
Code and served by that company, the address of the household, 6,198
and the source of the heat produced by the primary heating system 6,199
in the residence of the applicant. The tax commissioner may 6,200
DIRECTOR, for good cause, MAY certify addenda to such lists, 6,202
containing the names of any heads of household whose names were 6,203
not included in the earlier lists but who, except for failure to 6,204
meet the deadline requirements of sections 5117.01 to 5117.12 of 6,205
the Revised Code, would have been certified in the original 6,206
lists. Within thirty days of receipt of such list and in any 6,207
month for which a credit is required under sections 5117.01 to 6,208
5117.12 of the Revised Code, the company may verify that each 6,209
head of household on the commissioner's DIRECTOR'S list receives 6,210
149
energy for home heating at the household address appearing on 6,212
such list or that the source of heat produced by the primary 6,213
heating system in the household is energy supplied by the 6,214
company. If the company determines that a person listed does not 6,215
receive energy for home heating at such address or that the 6,216
source of the heat produced by the primary heating system in the 6,217
residence of such person is not supplied by the company, it shall 6,218
notify the commissioner DIRECTOR of such fact and may refuse to 6,220
grant the credit provided under division (A) of section 5117.07 6,221
of the Revised Code. Upon receipt of such notice, the 6,222
commissioner DIRECTOR shall determine the accuracy of the 6,224
determination of the company and, should he THE DIRECTOR not 6,225
concur with the company, shall order the company to provide the 6,226
credit.
(2) The good faith exercise by any company of any power of 6,228
refusal granted under division (A)(1) of this section does not 6,229
subject such company to any penalty or liability provided under 6,230
division (A) of section 5117.11 of the Revised Code. 6,231
(B)(1) Nothing in sections 5117.01 to 5117.12 of the 6,233
Revised Code shall be construed to abridge the right of an 6,234
otherwise eligible applicant to receive a credit or payment 6,235
because he THE APPLICANT has either changed the location of his 6,237
THE APPLICANT'S residence or the nature of the occupancy of his 6,238
THE APPLICANT'S residence, as between a tenant or an owner, at a 6,240
time that could, as a result of the operation of sections 5117.01 6,241
to 5117.12 of the Revised Code, cause him THE APPLICANT to be 6,242
disqualified from receiving, or continuing to receive, the credit 6,243
or payment.
(2) Where a person who submits a form or information 6,245
required under sections 5117.01 to 5117.10 of the Revised Code 6,246
does so in a timely fashion but, because of the occurrence of an 6,247
error or omission with respect to such form or information, 6,248
either on his THE PERSON'S OWN part or on the part of those 6,249
persons required by sections 5117.01 to 5117.12 of the Revised 6,251
150
Code to take administrative, executive, or ministerial action 6,252
regarding such form or information, the certification of 6,253
eligibility by the tax commissioner DIRECTOR to an energy company 6,254
takes place after the expiration of a deadline imposed under 6,255
sections 5117.01 to 5117.12 of the Revised Code, the company 6,256
shall grant the credit within thirty days and, whenever 6,257
appropriate, grant the credit on a retroactive basis. 6,258
(3) The tax commissioner DIRECTOR shall adopt a rule 6,260
ensuring that the requirements of divisions (B)(1) and (2) of 6,261
this section are effectuated. 6,262
Sec. 5117.09. (A) With respect to each of its residential 6,271
customers, every energy company shall, after receipt of a 6,272
certification list provided under division (A) of section 5117.08 6,273
of the Revised Code, cause the granting of a credit in accordance 6,274
with this section against the monthly billing of each household 6,275
appearing on the list except as provided in division (A) of 6,276
section 5117.08 of the Revised Code. In the case of an applicant 6,277
who has a total income of five thousand dollars or less or a 6,278
current total income of two thousand five hundred dollars or 6,279
less, the credit shall amount to thirty per cent of the current 6,280
monthly bill rendered to such household by the company for the 6,281
billing months of December, January, February, March, and April 6,282
following the receipt of a list on which the household appears. 6,283
In the case of an applicant who has a total income of more than 6,284
five thousand dollars but not more than nine thousand dollars or 6,285
a current total income of more than two thousand five hundred 6,286
dollars but not more than four thousand five hundred dollars, the 6,287
credit shall amount to twenty-five per cent of the current 6,288
monthly bill rendered to such household by the company for the 6,289
billing months of December, January, February, March, and April 6,290
following the receipt of a list on which the household appears. 6,291
If purchased power costs are incurred by an energy company during 6,292
the billing month for which a credit is provided under this 6,293
division, the credit shall also be applied to such costs, whether 6,294
151
or not the costs are charged to a current montly MONTHLY bill for 6,295
such months. 6,296
(B) Every energy company shall read the meter of each of 6,298
its qualified residential customers who may receive a credit 6,299
under division (A) of this section at least one time for the 6,300
service period of November and at least one time in the service 6,301
period for the current monthly bill rendered for the billing 6,302
month of April. In the event a company is unable to read a meter 6,303
because of failure to gain access after a good faith effort or 6,304
because a certification list was supplied to the utility fewer 6,305
than thirty days prior to the normal date of meter reading, the 6,306
company may render a calculated bill. In such instances, the 6,307
company shall make an adjustment to the amount of the credit 6,308
granted to the customer based upon the next actual reading of the 6,309
meter if the reading shows the previous calculation to have been 6,310
in error and set forth the amount of such adjustments in the 6,311
report required to be filed with the tax commissioner DIRECTOR OF 6,312
DEVELOPMENT under division (D) of this section. 6,313
(C) On each billing that is subject to a credit under 6,315
division (A) of this section, there shall appear in ten-point 6,316
type both the amount of the credit and to the left of such amount 6,317
"Ohio Energy Credit." 6,318
(D) On or before the fifteenth day of each month following 6,320
one in which credits were provided under division (A) of this 6,321
section, each energy company shall, on a form prescribed by the 6,322
tax commissioner DIRECTOR and requesting information that he THE 6,324
DIRECTOR determines is necessary for the purpose of verifying the 6,326
propriety of the payment of credits, certify to the commissioner 6,327
DIRECTOR the total amount of all credits it granted pursuant to 6,329
division (A) of this section during the preceding month. Not 6,330
later than thirty days after his receipt of such certification, 6,331
the commissioner DIRECTOR shall pay the company the amount 6,333
certified. If the commissioner DIRECTOR determines that a 6,335
company previously received amounts greater than the amounts of 6,336
152
credits properly granted, such company, upon notice from the 6,337
commissioner DIRECTOR, shall reimburse the commissioner DIRECTOR 6,338
in the amount of the overpayments. Such reimbursements shall be 6,339
deposited in the general revenue fund. 6,340
(E)(l) Any energy company that purposely fails to grant 6,342
the credit provided under division (A) of this section is liable 6,343
to each person entitled to the credit and certified to the 6,344
company by the tax commissioner DIRECTOR pursuant to division (A) 6,346
of section 5117.08 of the Revised Code in treble the amount of 6,347
the total credit not granted. The consumers' counsel may, on 6,348
behalf of any person or persons not granted the credit, MAY bring 6,349
an action to recover such treble damages in the court of common 6,350
pleas of the county in which is located the office of the company 6,351
nearest the household of any such person or persons. The 6,352
consumers' counsel may also, on behalf of any persons not granted 6,353
the credit, MAY bring a class action to recover such treble 6,354
damages in the court of common pleas of any county in which is 6,355
located an office of the company and, if feasible, in which is 6,356
located a significant number of members of the class. Any treble 6,357
damage recovery under this division does not, in any manner, 6,358
diminish any other liability provided under sections 5117.01 to 6,359
5117.12 of the Revised Code. Clerical errors shall not be 6,360
considered an offense or incur liability under this division. 6,361
(2) An action shall be brought by the consumers' counsel 6,363
under division (E)(1) of this section only after he THE 6,364
CONSUMERS' COUNSEL has made a good faith attempt to dispose of 6,366
the claim by settlement, including a good faith request for only 6,367
such information in the possession of an energy company as is 6,368
needed to determine the existence or extent of such a right of 6,369
action.
(3) Nothing in division (E)(1) of this section shall be 6,371
construed to prevent persons acting without the assistance of the 6,372
consumers' counsel from bringing an action or class action under 6,373
such division. 6,374
153
Sec. 5117.10. (A) On or before the fifteenth day of 6,383
January, the tax commissioner DIRECTOR OF DEVELOPMENT shall pay 6,384
each applicant determined eligible for a payment under divisions 6,386
(A) and (B) of section 5117.07 of the Revised Code one hundred 6,387
twenty-five dollars.
(B) The tax commissioner DIRECTOR may withhold from any 6,389
payment to which a person would otherwise be entitled under 6,391
division (A) of this section any amount that the tax commissioner 6,392
DIRECTOR determines was erroneously received by such person in a 6,394
preceding year under this or the program established under Am. 6,395
Sub. H.B. 230, as amended by Am. H.B. 937, Am. Sub. H.B. 1073, 6,396
Am. Sub. S.B. 493, and Am. Sub. S.B. 523 of the 112th general 6,397
assembly, provided the tax commissioner DIRECTOR has employed all 6,398
other legal methods reasonably available to obtain reimbursement 6,400
for the erroneous payment or credit prior to the commencement of 6,401
the current program year.
(C) Payments made under this section and credits granted 6,403
under section 5117.09 of the Revised Code shall not be considered 6,404
income for the purpose of determining eligibility or the level of 6,405
benefits or assistance under section 329.042 or Chapters 5107., 6,406
5111., and 5115. of the Revised Code; supplemental security 6,408
income payments under Title XVI of the "Social Security Act," 49 6,409
Stat. 620 (1935), 42 U.S.C. 301, as amended; or any other program 6,410
under which eligibility or the level of benefits or assistance is 6,411
based upon need measured by income.
Sec. 5117.12. (A) On or before the thirty-first day of 6,420
August of each year, each energy company shall file a written 6,421
report with the tax commissioner DIRECTOR OF DEVELOPMENT 6,422
regarding the impact, if any, of the requirements of division (E) 6,424
of section 5117.11 of the Revised Code on the number of 6,425
uncollectible and past due residential accounts for the 6,426
twelve-month period ending on the preceding thirty-first day of 6,427
July. The report shall include such information as is prescribed 6,428
by the tax commissioner DIRECTOR. The information shall be based 6,430
154
on actual reviews of residential customer accounts and shall be 6,431
presented in verifiable form. The tax commissioner DIRECTOR may 6,432
consult with the public utilities commission and the consumers' 6,434
counsel in prescribing the contents of such reports and complying 6,435
with the requirements of division (C)(4) of this section. 6,436
(B) Before the thirty-first day of January of each year, 6,438
the tax commissioner DIRECTOR shall prepare a written report 6,439
including a final review of the Ohio energy credit program for 6,441
which applications were required to be mailed or provided by the 6,442
fifteenth day of June of the second preceding calendar year 6,443
pursuant to section 5117.03 of the Revised Code and an interim 6,444
review of the program for which applications were required to be 6,445
mailed or provided by the fifteenth day of June of the preceding 6,446
calendar year under such section. On or before the thirty-first 6,447
day of January of each year, the commissioner DIRECTOR shall 6,448
provide written copies of such report to the speaker of the house 6,450
of representatives, president of the senate, minority leaders of 6,451
the house of representatives and senate, chairpersons of the 6,453
house finance and appropriations committee and senate finance 6,454
committee, chairpersons of the committees of the house of 6,455
representatives and senate customarily entrusted with matters 6,456
concerning public utilities, clerk of the house of 6,457
representatives, and clerk of the senate. 6,458
(C) Each report prepared under division (B) of this 6,460
section shall include a review of: 6,461
(1) Program costs; 6,463
(2) The number of persons receiving credits or payments 6,465
under the program; 6,466
(3) Progress in the implementation of any changes in the 6,468
program made by the general assembly within the period covered by 6,469
the report; 6,470
(4) The impact, if any, of the requirements of division 6,472
(E) of section 5117.11 of the Revised Code on the number of 6,473
uncollectible and past due residential accounts of energy 6,474
155
companies for the twelve-month period ending on the preceding 6,475
thirty-first day of July; 6,476
(5) The impact of any federal energy assistance programs 6,478
available to the same groups of people as are eligible for the 6,479
energy credit program under sections 5117.01 to 5117.12 of the 6,480
Revised Code, together with any recommendations on modifications 6,481
that may, because of the federal programs, be needed in the 6,482
energy credit program; 6,483
(6) Any suggestions for improving the program; 6,485
(7) Any other matters considered appropriate by the 6,487
commissioner DIRECTOR. 6,488
(D) The tax commissioner DIRECTOR shall consult with the 6,490
auditor of state, energy companies, energy dealers, department of 6,492
aging, and commission on Hispanic-Latino affairs in the 6,494
preparation of any report under this section. The commissioner 6,495
DIRECTOR may require information from such agencies for the 6,497
purpose of preparing such report.
Sec. 5701.03. As used in Title LVII of the Revised Code: 6,506
(A) "Personal property" includes every tangible thing that 6,508
is the subject of ownership, whether animate or inanimate, 6,509
including a business fixture, and that does not constitute real 6,510
property as defined in section 5701.02 of the Revised Code. 6,511
"Personal property" also includes every share, portion, right, or 6,512
interest, either legal or equitable, in and to every ship, 6,513
vessel, or boat, used or designed to be used in business either 6,514
exclusively or partially in navigating any of the waters within 6,515
or bordering on this state, whether such ship, vessel, or boat is 6,516
within the jurisdiction of this state or elsewhere. "Personal 6,517
property" does not include money as defined in section 5701.04 of 6,518
the Revised Code, motor vehicles registered by the owner thereof, 6,519
ELECTRICITY, or, for purposes of any tax levied on personal 6,521
property, patterns, jigs, dies, or drawings that are held for use 6,522
and not for sale in the ordinary course of business, except to 6,523
the extent that the value of the ELECTRICITY, patterns, jigs, 6,524
156
dies, or drawings is included in the valuation of inventory 6,526
produced for sale.
(B) "Business fixture" means an item of tangible personal 6,528
property that has become permanently attached or affixed to the 6,529
land or to a building, structure, or improvement, and that 6,530
primarily benefits the business conducted by the occupant on the 6,531
premises and not the realty. "Business fixture" includes, but is 6,532
not limited to, machinery, equipment, signs, storage bins and 6,533
tanks, whether above or below ground, and broadcasting, 6,534
transportation, transmission, and distribution systems, whether 6,535
above or below ground. "Business fixture" also means those 6,536
portions of buildings, structures, and improvements that are 6,537
specially designed, constructed, and used for the business 6,538
conducted in the building, structure, or improvement, including, 6,539
but not limited to, foundations and supports for machinery and 6,540
equipment. "Business fixture" does not include fixtures that are 6,541
common to buildings, including, but not limited to, heating, 6,542
ventilation, and air conditioning systems primarily used to 6,543
control the environment for people or animals, tanks, towers, and 6,544
lines for potable water or water for fire control, electrical and 6,545
communication lines, and other fixtures that primarily benefit 6,546
the realty and not the business conducted by the occupant on the 6,547
premises. 6,548
Sec. 5703.052. There is hereby created in the state 6,557
treasury the tax refund fund, from which refunds shall be paid 6,558
for taxes illegally or erroneously assessed or collected, or for 6,559
any other reason overpaid, that are levied by Chapter 4301., 6,560
4305., 5728., 5729., 5733., 5735., 5739., 5741., 5743., 5747., 6,561
5748., 5749., or 5753., and sections 3737.71, 3905.35, 3905.36, 6,562
4303.33, 5707.03, 5725.18, 5727.38 and former sections 5727.27, 6,564
and 5727.40 5727.81 of the Revised Code. Refunds for fees 6,566
illegally or erroneously assessed or collected, or for any other 6,567
reason overpaid, that are levied by sections 3734.90 to 3734.9014 6,568
of the Revised Code also shall be paid from the fund. However, 6,569
157
refunds for taxes levied under section 5739.101 of the Revised 6,570
Code shall not be paid from the tax refund fund, but shall be 6,571
paid as provided in section 5739.104 of the Revised Code. 6,572
Upon certification by the tax commissioner to the treasurer 6,574
of state of a tax refund, fee refund, or tax credit due, or by 6,575
the superintendent of insurance of a domestic or foreign 6,576
insurance tax refund, the treasurer of state may place the amount 6,577
certified to the credit of the fund. The certified amount 6,578
transferred shall be derived from current receipts of the same 6,579
tax or the fee for which the refund arose or, in the case of a 6,580
tax credit refund, from the current receipts of the taxes levied 6,581
by sections 5739.02 and 5741.02 of the Revised Code. 6,582
If the tax refund arises from a tax payable to the general 6,584
revenue fund, and current receipts from that source are 6,585
inadequate to make the transfer of the amount so certified, the 6,586
treasurer of state may transfer such certified amount from 6,587
current receipts of the sales tax levied by section 5739.02 of 6,588
the Revised Code. 6,589
Sec. 5703.053. As used in this section, "postal service" 6,598
means the United States postal service. 6,599
An application to the tax commissioner for a tax refund 6,601
under sections 4307.05, 4307.07, 5727.91, 5728.061, 5735.122, 6,602
5735.13, 5735.14, 5735.141, 5735.142, 5739.07, 5741.10, 5743.05, 6,604
5743.53, 5749.08, and 5753.06 of the Revised Code or division (B) 6,605
of section 5703.05 of the Revised Code, or a fee refunded under 6,606
section 3734.905 of the Revised Code, that is received after the 6,607
last day for filing under such section shall be considered to 6,608
have been filed in a timely manner if: 6,609
(A) The application is delivered by the postal service and 6,611
the earliest postal service postmark on the cover in which the 6,612
application is enclosed is not later than the last day for filing 6,613
the application; 6,614
(B) The application is delivered by the postal service, 6,616
the only postmark on the cover in which the application is 6,617
158
enclosed was affixed by a private postal meter, the date of that 6,618
postmark is not later than the last day for filing the 6,619
application, and the application is received within seven days of 6,620
such last day; or 6,621
(C) The application is delivered by the postal service, no 6,623
postmark date was affixed to the cover in which the application 6,624
is enclosed or the date of the postmark so affixed is not 6,625
legible, and the application is received within seven days of the 6,626
last day for making the application. 6,627
Sec. 5703.14. (A) Any rule adopted by the board of tax 6,636
appeals and any rule of the department of taxation adopted by the 6,637
tax commissioner shall be effective on the tenth day after the 6,638
day on which the rule in final form and in compliance with 6,639
division (B) of this section is filed by the board or the 6,640
commissioner as follows: 6,641
(1) Two certified copies of the rule shall be filed with 6,643
both the secretary of state and the director of the legislative 6,644
service commission; 6,645
(2) Two certified copies of the rule shall be filed with 6,647
the joint committee on agency rule review. Division (A)(2) of 6,648
this section does not apply to any rule to which division (H) of 6,649
section 119.03 of the Revised Code does not apply. 6,650
If all copies are not filed on the same day, the rule shall 6,652
be effective on the tenth day after the day on which the latest 6,653
filing is made. If the board or the commissioner in adopting a 6,654
rule designates an effective date that is later than the 6,655
effective date provided for by this division, the rule if filed 6,656
as required by this division shall become effective on the later 6,657
date designated by the board or commissioner. 6,658
(B) The board and commissioner shall file the rule in 6,660
compliance with the following standards and procedures: 6,661
(1) The rule shall be numbered in accordance with the 6,663
numbering system devised by the director for the Ohio 6,664
administrative code. 6,665
159
(2) The rule shall be prepared and submitted in compliance 6,667
with the rules of the legislative service commission. 6,668
(3) The rule shall clearly state the date on which it is 6,670
to be effective and the date on which it will expire, if known. 6,671
(4) Each rule that amends or rescinds another rule shall 6,673
clearly refer to the rule that is amended or rescinded. Each 6,674
amendment shall fully restate the rule as amended. 6,675
If the director of the legislative service commission or 6,677
his THE DIRECTOR'S designee gives the board or commissioner 6,678
written notice pursuant to section 103.05 of the Revised Code 6,679
that a rule filed by the board or commissioner is not in 6,680
compliance with the rules of the legislative service commission, 6,681
the board or commissioner shall within thirty days after receipt 6,682
of the notice conform the rule to the rules of the legislative 6,683
service commission as directed in the notice. 6,684
All rules of the department and board filed pursuant to 6,686
division (A)(1) of this section shall be recorded by the 6,687
secretary of state and the director under the name of the 6,688
department or board and shall be numbered in accordance with the 6,689
numbering system devised by the director. The secretary of state 6,690
and the director shall preserve the rules in an accessible 6,691
manner. Each such rule shall be a public record open to public 6,692
inspection and may be lent to any law publishing company that 6,693
wishes to reproduce it. Each such rule shall also be made 6,694
available to interested parties upon request directed to the 6,695
department. 6,696
(C) Applications for review of any rule adopted and 6,698
promulgated by the commissioner may be filed with the board by 6,699
any person who has been or may be injured by the operation of the 6,700
rule. The appeal may be taken at any time after the rule is 6,701
filed with the secretary of the state, the director of the 6,702
legislative service commission, and, if applicable, the joint 6,703
committee on agency rule review. Failure to file an appeal does 6,704
not preclude any person from seeking any other remedy against the 6,705
160
application of the rule to him THE PERSON. The applications 6,706
shall set forth, or have attached thereto and incorporated by 6,707
reference, a true copy of the rule, and shall allege that the 6,708
rule complained of is unreasonable and shall state the grounds 6,709
upon which the allegation is based. Upon the filing of the 6,710
application, the board shall notify the commissioner of the 6,711
filing of the application, fix a time for hearing the 6,712
application, notify the commissioner and the applicant of the 6,713
time for the hearing, and afford both an opportunity to be heard. 6,714
The appellant, the tax commissioner, and any other interested 6,715
persons that the board permits, may introduce evidence. The 6,716
burden of proof to show that the rule is unreasonable shall be 6,717
upon the appellant. After the hearing, the board shall determine 6,718
whether the rule complained of is reasonable or unreasonable. A 6,719
determination that the rule complained of is unreasonable shall 6,720
require a majority vote of the three members of the board, and 6,721
the reasons for the determination shall be entered on the journal 6,722
of the board. 6,723
Upon determining that the rule complained of is 6,725
unreasonable, the board shall file copies of its determination as 6,726
follows: 6,727
(1) Two certified copies of the determination shall be 6,729
filed with both the secretary of state and the director of the 6,730
legislative service commission, who shall note the date of their 6,731
receipt of the certified copies conspicuously in their files of 6,732
the rules of the department; 6,733
(2) Two certified copies of the determination shall be 6,735
filed with the joint committee on agency rule review. Division 6,736
(C)(2) of this section does not apply to any rule to which 6,737
division (H) of section 119.03 of the Revised Code does not 6,738
apply. 6,739
On the tenth day after the copies of the determination have 6,741
been received by the secretary of state, the director, and, if 6,742
applicable, the joint committee, the rule referred to in the 6,743
161
determination shall cease to be in effect. If all copies of the 6,744
determination are not filed on the same day, the rule shall 6,745
remain in effect until the tenth day after the day on which the 6,746
latest filing is made. This section does not apply to licenses 6,747
issued under sections 5735.02, 5739.17, and 5743.15 of the 6,748
Revised Code, which shall be governed by sections 119.01 to 6,749
119.13 of the Revised Code. 6,750
The board is not required to hear an application for the 6,752
review of any rule where the grounds of the allegation that the 6,753
rule is unreasonable have been previously contained in an 6,754
application for review and have been previously heard and passed 6,755
upon by the board. 6,756
(D) This section does not apply to the adoption of any 6,758
rule, or to the amendment or rescission of any rule by the tax 6,759
commissioner under division (C)(1) or (2) of section 5117.02 of 6,760
the Revised Code. 6,761
(E) As used in this section, "substantive revision" has 6,763
the same meaning as in division (J) of section 119.01 of the 6,764
Revised Code. 6,765
Sec. 5705.34. When the budget commission has completed its 6,774
work with respect to a tax budget, it shall certify its action to 6,775
the taxing authority, together with an estimate by the county 6,777
auditor of the rate of each tax necessary to be levied by the 6,778
taxing authority within its subdivision or taxing unit, and what
part thereof is in excess of, and what part within, the ten-mill 6,779
tax limitation. The certification shall also indicate the date 6,780
on which each tax levied by the taxing authority will expire. 6,781
Each
IF A TAXING AUTHORITY LEVIES A TAX FOR A FIXED SUM OF MONEY 6,783
OR TO PAY DEBT CHARGES FOR THE TAX YEAR FOR WHICH THE TAX BUDGET 6,784
IS PREPARED, AND THE TAX WAS LEVIED IN TAX YEAR 1998, THE COUNTY 6,785
AUDITOR, WHEN ESTIMATING THE RATE AT WHICH THE TAX SHALL BE 6,786
LEVIED IN THE CURRENT YEAR, SHALL ESTIMATE THE RATE NECESSARY TO 6,787
RAISE THE REQUIRED SUM LESS THE ESTIMATED AMOUNT OF ANY PAYMENTS
162
MADE FOR THE TAX YEAR TO A TAXING UNIT UNDER SECTIONS 5727.85 AND 6,788
5727.86 OF THE REVISED CODE. THE ESTIMATED RATE SHALL BE THE 6,789
RATE OF THE LEVY THAT THE BUDGET COMMISSION CERTIFIES WITH ITS 6,790
ACTION UNDER THIS SECTION. 6,791
EACH taxing authority, by ordinance or resolution, shall 6,793
authorize the necessary tax levies and certify them to the county 6,794
auditor before the first day of October in each year, or at such 6,795
later date as is approved by the tax commissioner, except that 6,796
the certification by a board of education shall be made by the 6,797
first day of April or at such later date as is approved by the 6,798
commissioner, and except that a township board of park
commissioners that is appointed by the board of township trustees 6,799
and oversees a township park district that contains only 6,800
unincorporated territory shall authorize only those taxes 6,801
approved by, and only at the rate approved by, the board of 6,802
township trustees as required by division (C) of section 511.27
of the Revised Code. If the levying of a tax to be placed on the 6,803
duplicate of the current year is approved by the electors of the 6,804
subdivision under sections 5705.01 to 5705.47 of the Revised 6,805
Code; if the rate of a school district tax is increased due to 6,806
the repeal of a school district income tax and property tax rate 6,807
reduction at an election held pursuant to section 5748.04 of the
Revised Code; or if refunding bonds to refund all or a part of 6,808
the principal of bonds payable from a tax levy for the ensuing 6,809
fiscal year are issued or sold and in the process of delivery, 6,810
the budget commission shall reconsider and revise its action on 6,811
the budget of the subdivision or school library district for 6,812
whose benefit the tax is to be levied after the returns of such
election are fully canvassed, or after the issuance or sale of 6,813
such refunding bonds is certified to it. 6,814
Sec. 5727.01. As used in this chapter: 6,823
(A) "Public utility" means each person referred to as a 6,825
telephone company, telegraph company, electric company, natural 6,826
gas company, pipe-line company, water-works company, water 6,827
163
transportation company, heating company, rural electric company, 6,828
or railroad company. 6,829
(B) "Gross receipts" means the entire receipts for 6,831
business done by any person from operation as a public utility, 6,832
or incidental thereto, or in connection therewith, INCLUDING ANY 6,833
RECEIPTS RECEIVED UNDER CHAPTER 4928. OF THE REVISED CODE. The 6,834
gross receipts for business done by an incorporated company 6,835
engaged in operation as a public utility includes the entire 6,836
receipts for business done by such company under the exercise of 6,837
its corporate powers, whether from the operation as a public 6,838
utility or from any other business. 6,839
(C) "Rural electric company" means any nonprofit 6,841
corporation, organization, association, or cooperative engaged in 6,842
the business of supplying electricity to its members or persons 6,843
owning an interest therein in an area the major portion of which 6,844
is rural. 6,845
(D) Any person: 6,847
(1) Is a telegraph company when engaged in the business of 6,849
transmitting telegraphic messages to, from, through, or in this 6,850
state; 6,851
(2) Is a telephone company when primarily engaged in the 6,853
business of providing local exchange telephone service, excluding 6,854
cellular radio service, in this state; 6,855
(3) Is an electric company when engaged in the business of 6,857
generating, transmitting, or distributing electricity within this 6,858
state for use by others, BUT EXCLUDES A RURAL ELECTRIC COMPANY; 6,859
(4) Is a natural gas company when engaged in the business 6,861
of supplying natural gas for lighting, power, or heating purposes 6,862
to consumers within this state; 6,863
(5) Is a pipe-line company when engaged in the business of 6,865
transporting natural gas, oil, or coal or its derivatives through 6,866
pipes or tubing, either wholly or partially within this state; 6,867
(6) Is a water-works company when engaged in the business 6,869
of supplying water through pipes or tubing, or in a similar 6,870
164
manner, to consumers within this state; 6,871
(7) Is a water transportation company when engaged in the 6,873
transportation of passengers or property, by boat or other 6,874
watercraft, over any waterway, whether natural or artificial, 6,875
from one point within this state to another point within this 6,876
state, or between points within this state and points without 6,877
this state; 6,878
(8) Is a heating company when engaged in the business of 6,880
supplying water, steam, or air through pipes or tubing to 6,881
consumers within this state for heating purposes; 6,882
(9) Is a railroad company when engaged in the business of 6,884
owning or operating a railroad either wholly or partially within 6,885
this state on rights-of-way acquired and held exclusively by such 6,887
company, or otherwise, and includes a passenger, street, 6,888
suburban, or interurban railroad company. 6,889
As used in division (D)(2) of this section, "local exchange 6,891
telephone service" means making available or furnishing access 6,892
and a dial tone to all persons within a local calling area for 6,893
use in originating and receiving voice grade communications over 6,894
a switched network operated by the provider of the service within 6,895
the area and for gaining access to other telecommunication 6,896
services. 6,897
(E) "Taxable property" means the property required by 6,899
section 5727.06 of the Revised Code to be assessed by the tax 6,900
commissioner, but does not include either of the following: 6,901
(1) An item of tangible personal property that for the 6,903
period subsequent to the effective date of an air, water, or 6,904
noise pollution control certificate and continuing so long as the 6,905
certificate is in force, has been certified as part of the 6,906
pollution control facility with respect to which the certificate 6,907
has been issued; 6,908
(2) An item of tangible personal property that during the 6,910
construction of a plant or facility and until the item is first 6,911
capable of operation, whether actually used in operation or not, 6,912
165
is incorporated in or being held exclusively for incorporation in 6,913
that plant or facility. 6,914
(F) "Taxing district" means a municipal corporation or 6,916
township, or part thereof, in which the aggregate rate of 6,917
taxation is uniform. 6,918
(G) "Telecommunications service" has the same meaning as 6,920
in division (AA) of section 5739.01 of the Revised Code. 6,921
(H) "Interexchange telecommunications company" means a 6,923
person that is engaged in the business of transmitting telephonic 6,924
messages to, from, through, or in this state, but that is not a 6,925
telephone company. 6,926
(I) "Sale and leaseback transaction" means a transaction 6,928
in which a public utility or interexchange telecommunications 6,929
company sells any tangible personal property to a person other 6,930
than a public utility or interexchange telecommunications company 6,931
and within the same calendar year leases that property back from 6,932
the buyer. 6,933
(J) "PRODUCTION EQUIPMENT" MEANS ALL TAXABLE STEAM, 6,935
NUCLEAR, HYDRAULIC, AND OTHER PRODUCTION PLANT EQUIPMENT USED TO 6,936
GENERATE ELECTRICITY. FOR TAX YEARS PRIOR TO 2001, "PRODUCTION 6,937
EQUIPMENT" INCLUDES TAXABLE STATION EQUIPMENT THAT IS LOCATED AT 6,938
A PRODUCTION PLANT. 6,939
(K) "TAX YEAR" MEANS THE YEAR FOR WHICH PROPERTY OR GROSS 6,941
RECEIPTS ARE SUBJECT TO ASSESSMENT UNDER THIS CHAPTER. THIS 6,942
DIVISION DOES NOT LIMIT THE TAX COMMISSIONER'S ABILITY TO ASSESS 6,943
AND VALUE PROPERTY OR GROSS RECEIPTS OUTSIDE THE TAX YEAR. 6,944
(L) "COMBINED COMPANY" MEANS ANY PERSON ENGAGED IN THE 6,946
ACTIVITY OF AN ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY THAT IS 6,947
ALSO ENGAGED IN THE ACTIVITY OF A HEATING COMPANY OR A NATURAL 6,948
GAS COMPANY, OR ANY COMBINATION THEREOF. 6,949
Sec. 5727.02. As used in this chapter, "public utility," 6,958
"electric company," "natural gas company," "pipe-line company," 6,959
"water-works company," "water transportation company" or "heating 6,960
company" does not include ANY OF THE FOLLOWING: 6,961
166
(A) Any person that is engaged in some other primary 6,963
business to which the supplying of electricity, heat, natural 6,964
gas, water, water transportation, steam, or air to others is 6,965
incidental; or. AS USED IN THIS DIVISION, "SUPPLYING OF 6,966
ELECTRICITY" MEANS GENERATING, TRANSMITTING, OR DISTRIBUTING 6,967
ELECTRICITY.
(B) Any person that supplies electricity, natural gas, 6,969
water, water transportation, steam, or air to its tenants, 6,970
whether for a separate charge or otherwise; or 6,971
(C) Any person whose primary business in this state 6,973
consists of producing, refining, or marketing petroleum or its 6,974
products. 6,975
Sec. 5727.03. (A) A COMBINED COMPANY SHALL FILE A 6,977
SEPARATE REPORT UNDER SECTION 5727.08 OF THE REVISED CODE FOR 6,979
EACH LISTED ACTIVITY OF A COMBINED COMPANY. THE TAX COMMISSIONER 6,981
SHALL SEPARATELY VALUE, APPORTION, AND ASSESS THE COMPANY'S 6,982
PROPERTY. DIVISIONS (B)(1), (2), AND (3) OF THIS SECTION SHALL 6,983
BE USED TO DETERMINE THE TAXABLE PROPERTY THAT CANNOT DIRECTLY BE 6,984
ATTRIBUTED TO PROVIDING ONE OF THE LISTED ACTIVITIES OF A 6,985
COMBINED COMPANY. BEGINNING WITH THE PUBLIC UTILITY EXCISE TAX 6,987
ASSESSED BY THE TAX COMMISSIONER ON OR BEFORE THE FIRST MONDAY IN 6,988
NOVEMBER 2002, DIVISION (C) OF THIS SECTION SHALL BE USED BY THE 6,990
TAX COMMISSIONER TO SEPARATE THE GROSS RECEIPTS OF A COMBINED 6,991
COMPANY ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A 6,992
RURAL ELECTRIC COMPANY.
(B)(1) THE TAXABLE PROPERTY TO ATTRIBUTE TO AN ELECTRIC 6,994
COMPANY OR A RURAL ELECTRIC COMPANY ACTIVITY SHALL BE THE TAXABLE 6,995
COST OF THE PROPERTY THAT CANNOT BE DIRECTLY ATTRIBUTED TO A 6,996
LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED BY A NUMERATOR 6,997
THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE DIRECTLY 6,998
ATTRIBUTED TO THE ACTIVITY OF AN ELECTRIC COMPANY OR A RURAL 6,999
ELECTRIC COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE 7,000
COST THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES 7,001
OF A COMBINED COMPANY. 7,002
167
(2) THE TAXABLE PROPERTY TO ATTRIBUTE TO A HEATING COMPANY 7,004
SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE DIRECTLY 7,005
ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY MULTIPLIED 7,006
BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY THAT CAN BE 7,007
DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A HEATING COMPANY AND A 7,008
DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST THAT CAN BE 7,009
DIRECTLY ATTRIBUTED TO ALL LISTED ACTIVITIES OF A COMBINED 7,010
COMPANY.
(3) THE TAXABLE PROPERTY TO ATTRIBUTE TO A NATURAL GAS 7,012
COMPANY SHALL BE THE TAXABLE COST OF THE PROPERTY THAT CANNOT BE 7,013
DIRECTLY ATTRIBUTED TO A LISTED ACTIVITY OF A COMBINED COMPANY 7,014
MULTIPLIED BY A NUMERATOR THAT IS THE TAXABLE COST OF PROPERTY 7,015
THAT CAN BE DIRECTLY ATTRIBUTED TO THE ACTIVITY OF A NATURAL GAS 7,016
COMPANY AND A DENOMINATOR THAT IS THE SUM OF THE TAXABLE COST 7,017
THAT CAN BE DIRECTLY ATTRIBUTED TO ALL THE LISTED ACTIVITIES OF A 7,018
COMBINED COMPANY. 7,019
(C) NOTWITHSTANDING ANY OTHER PROVISION OF THE REVISED 7,021
CODE, A COMBINED COMPANY SHALL CONTINUE TO BE SUBJECT TO THE 7,022
EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE. FROM 7,023
THE REPORT FILED BY A COMBINED COMPANY UNDER SECTION 5727.31 OF 7,024
THE REVISED CODE, THE TAX COMMISSIONER SHALL EXCLUDE THE TAXABLE 7,026
GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO THE ACTIVITY OF AN 7,027
ELECTRIC COMPANY OR A RURAL ELECTRIC COMPANY. IN ADDITION, THE 7,028
TAX COMMISSIONER SHALL EXCLUDE THE PORTION OF TAXABLE GROSS 7,029
RECEIPTS THAT CANNOT BE ATTRIBUTED TO A LISTED COMBINED PUBLIC 7,030
UTILITY ACTIVITY OR ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO 7,031
THE EXCISE TAX IMPOSED BY SECTION 5727.30 OF THE REVISED CODE BY 7,032
MULTIPLYING THOSE TAXABLE GROSS RECEIPTS BY A NUMERATOR THAT IS
THE TAXABLE GROSS RECEIPTS THAT CAN BE ATTRIBUTED TO AN ELECTRIC
COMPANY OR A RURAL ELECTRIC COMPANY ACTIVITY, AND A DENOMINATOR 7,033
THAT IS THE SUM OF THE TAXABLE GROSS RECEIPTS THAT CAN BE 7,034
DIRECTLY ATTRIBUTED TO A LISTED COMBINED COMPANY ACTIVITY OR 7,035
ANOTHER PUBLIC UTILITY ACTIVITY SUBJECT TO THE EXCISE TAX IMPOSED 7,036
BY SECTION 5727.30 OF THE REVISED CODE. FOR PURPOSES OF 7,037
168
DETERMINING THE TAXABLE GROSS RECEIPTS FOR PROVIDING ELECTRIC 7,038
COMPANY OR RURAL ELECTRIC COMPANY SERVICE UNDER THIS DIVISION, 7,039
THE TAXABLE GROSS RECEIPTS AS REPORTED UNDER SECTION 5727.32 OF 7,040
THE REVISED CODE AND DETERMINED UNDER SECTION 5727.33 OF THE 7,041
REVISED CODE, PRIOR TO THE AMENDMENT OF THOSE SECTIONS BY 7,042
SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd GENERAL ASSEMBLY, SHALL 7,046
BE USED.
Sec. 5727.05. This chapter does SECTIONS 5727.01 TO 7,055
5727.61 OF THE REVISED CODE DO not apply to either of the 7,056
following:
(A) Nonprofit corporations as defined in division (C) of 7,058
section 1702.01 of the Revised Code that are engaged exclusively 7,059
in the treatment, distribution, and sale of water to consumers; 7,060
(B) Municipal corporations within this state. 7,062
Sec. 5727.06. (A) Except as otherwise provided by law, 7,071
the following constitutes the taxable property of a public 7,072
utility or interexchange telecommunications company that shall be 7,073
assessed by the tax commissioner: 7,074
(1) In the case of a railroad company, all real property 7,076
and tangible personal property owned or operated by the railroad 7,077
company in this state on the thirty-first day of December of the 7,078
preceding year; 7,079
(2) In the case of a water transportation company, all 7,081
tangible personal property, except watercraft, owned or operated 7,082
by the water transportation company in this state on the 7,083
thirty-first day of December of the preceding year and all 7,084
watercraft owned or operated by the water transportation company
in this state during the preceding calendar year; 7,085
(3) In the case of all other public utilities and 7,087
interexchange telecommunications companies, all tangible personal 7,088
property that on the thirty-first day of December of the 7,089
preceding year was both located in this state and: 7,090
(a) Owned by the public utility or interexchange 7,092
telecommunications company; or 7,093
169
(b) Leased by the public utility or interexchange 7,095
telecommunications company under a sale and leaseback 7,096
transaction. 7,097
(B) In the case of an interexchange telecommunications 7,099
company, all taxable property shall be subject to the provisions 7,100
of this chapter and shall be valued by the commissioner in 7,101
accordance with division (B)(A) of section 5727.11 of the Revised 7,103
Code and assessed by the commissioner in accordance with division 7,104
(G) of section 5727.111 of the Revised Code. A person described 7,106
by this division shall file the report required by section 7,107
5727.08 of the Revised Code. Persons described in this division 7,108
shall not be considered taxpayers, as defined in division (B) of 7,109
section 5711.01 of the Revised Code, and shall not be required to 7,110
file a return and list their taxable property under any provision 7,111
of Chapter 5711. of the Revised Code. 7,112
(C) The lien of the state for taxes levied each year on 7,114
the real and personal property of public utilities and 7,115
interexchange telecommunications companies shall attach thereto 7,116
on the thirty-first day of December of the preceding year. 7,117
(D) Property that is required by division (A)(3)(b) of 7,119
this section to be assessed by the tax commissioner under this 7,120
chapter shall not be listed by the owner of the property under 7,121
Chapter 5711. of the Revised Code. 7,122
(E) The tax commissioner may adopt rules governing the 7,124
listing of the taxable property of public utilities and 7,125
interexchange telecommunications companies and the determination 7,126
of true value. 7,127
Sec. 5727.11. (A) As used in this section, section 7,136
5727.111, and division (C) of section 5727.15 of the Revised 7,137
Code, "production equipment" means all taxable steam, nuclear, 7,138
hydraulic, and other production plant equipment, and all taxable 7,139
station equipment that is located at a production plant. 7,140
(B) Except as OTHERWISE provided in divisions (C), (D), 7,142
(E), and (G) of this section, the true value of all taxable 7,144
170
property required by division (A)(2) or (3) of section 5727.06 of 7,146
the Revised Code to be assessed by the tax commissioner shall be 7,147
determined by a method of valuation using cost as capitalized on 7,148
the public utility's books and records less composite annual 7,149
allowances as prescribed by the commissioner. If the 7,150
commissioner finds that application of this method will not 7,151
result in the determination of true value of the public utility's 7,152
taxable property, he THE COMMISSIONER may use another method of 7,154
valuation. The cost of property subject to a sale and leaseback 7,155
transaction is the cost of the property as capitalized on the 7,156
books and records of the public utility owning the property 7,157
immediately prior to the sale and leaseback transaction.
(C)(B) The true value of current gas stored underground is 7,159
the cost of that gas shown on the books and records of the public 7,160
utility on the thirty-first day of December of the preceding 7,161
year. 7,162
(D)(C) The true value of noncurrent gas stored underground 7,164
is thirty-five per cent of the cost of that gas shown on the 7,165
books and records of the public utility on the thirty-first day 7,166
of December of the preceding year. 7,167
(E) The (D)(1) EXCEPT AS PROVIDED IN DIVISION (D)(2) OF 7,170
THIS SECTION, THE true value of the production equipment of an 7,171
electric company and the true value of all taxable property of a 7,172
rural electric company is the equipment's or property's cost as 7,173
capitalized on the company's books and records less fifty per 7,174
cent of that cost as an allowance for depreciation and 7,175
obsolescence. The cost of equipment or property subject to a 7,176
sale and leaseback transaction is the cost of the property as 7,177
capitalized on the books and records of the public utility owning 7,178
the equipment or property immediately prior to the sale and 7,179
leaseback transaction. 7,180
(2) THE TRUE VALUE OF THE PRODUCTION EQUIPMENT OF AN 7,182
ELECTRIC COMPANY OR RURAL ELECTRIC COMPANY PURCHASED, 7,183
TRANSFERRED, OR PLACED INTO SERVICE AFTER THE EFFECTIVE DATE OF 7,185
171
THIS AMENDMENT IS THE PURCHASE PRICE OF THE EQUIPMENT AS 7,186
CAPITALIZED ON THE COMPANY'S BOOKS AND RECORDS LESS COMPOSITE 7,187
ANNUAL ALLOWANCES AS PRESCRIBED BY THE TAX COMMISSIONER. 7,188
(F)(E) The true value of taxable property described in 7,190
division (A)(2) or (3) of section 5727.06 of the Revised Code 7,191
shall not include the allowance for funds used during 7,192
construction or interest during construction which THAT has been 7,193
capitalized on the public utility's books and records as part of 7,195
the total cost of the taxable property. THIS DIVISION SHALL NOT 7,196
APPLY TO THE TAXABLE PROPERTY OF AN ELECTRIC COMPANY OR A RURAL 7,197
ELECTRIC COMPANY, EXCLUDING TRANSMISSION AND DISTRIBUTION 7,198
PROPERTY, FIRST PLACED INTO SERVICE AFTER DECEMBER 31, 2000, OR 7,199
TO THE TAXABLE PROPERTY A PERSON PURCHASES, WHICH INCLUDES 7,200
TRANSFERS, IF THAT PROPERTY WAS USED IN BUSINESS BY THE SELLER
PRIOR TO THE PURCHASE. 7,201
(G)(F) The true value of watercraft owned or operated by a 7,203
water transportation company shall be determined by multiplying 7,205
the true value of the watercraft as determined under division 7,206
(B)(A) of this section by a fraction, the numerator of which is 7,208
the number of revenue-earning miles traveled by the watercraft in
the waters of this state and the denominator of which is the 7,209
number of revenue-earning miles traveled by the watercraft in all 7,210
waters.
(G) THE COST OF PROPERTY SUBJECT TO A SALE AND LEASEBACK 7,212
TRANSACTION IS THE COST OF THE PROPERTY AS CAPITALIZED ON THE 7,213
BOOKS AND RECORDS OF THE PUBLIC UTILITY OWNING THE PROPERTY 7,215
IMMEDIATELY PRIOR TO THE SALE AND LEASEBACK TRANSACTION.
(H) THE COST AS CAPITALIZED ON THE BOOKS AND RECORDS OF A 7,217
PUBLIC UTILITY INCLUDES AMOUNTS CAPITALIZED THAT REPRESENT 7,218
REGULATORY ASSETS, IF SUCH AMOUNTS PREVIOUSLY WERE INCLUDED ON 7,219
THE COMPANY'S BOOKS AND RECORDS AS CAPITALIZED COSTS OF TAXABLE 7,220
PERSONAL PROPERTY.
Sec. 5727.111. The taxable property of each public 7,228
utility, except a railroad company, and of each interexchange 7,229
172
telecommunications company shall be assessed at the following 7,230
percentages of true value: 7,231
(A) Fifty per cent in the case OF THE TAXABLE TRANSMISSION 7,233
AND DISTRIBUTION PROPERTY of a rural electric company, AND 7,235
TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE PROPERTY; 7,236
(B) In the case of a telephone or telegraph company, the 7,239
percentage provided under division (E) of section 5711.22 of the 7,240
Revised Code TWENTY-FIVE PER CENT for taxable property first 7,242
subject to taxation in this state for tax year 1995 or 7,243
thereafter, and eighty-eight per cent for all other taxable
property;
(C) Eighty-eight per cent in the case of a natural gas or 7,245
pipe-line company; 7,246
(D) Eighty-eight per cent in the case of a water-works or 7,248
heating company; 7,249
(E) One hundred per cent in the case of the taxable 7,251
production equipment of an electric company; 7,252
(F) Eighty-eight (1) EXCEPT AS PROVIDED IN DIVISION 7,255
(E)(2) OF THIS SECTION, EIGHTY-EIGHT per cent in the case of all 7,256
taxable personal THE TAXABLE TRANSMISSION AND DISTRIBUTION 7,257
property of an electric company, other than its production 7,259
equipment AND TWENTY-FIVE PER CENT FOR ALL ITS OTHER TAXABLE
PROPERTY; 7,260
(2) PROPERTY LISTED AND ASSESSED UNDER DIVISIONS (B)(1) 7,262
AND (2) OF SECTION 5711.22 OF THE REVISED CODE SHALL CONTINUE TO 7,264
BE ASSESSED AT ONE HUNDRED PER CENT FOR PRODUCTION EQUIPMENT AND
EIGHTY-EIGHT PER CENT FOR ALL OTHER TAXABLE PROPERTY UNTIL 7,265
JANUARY 1, 2002. 7,266
(G) The percentage provided under division (E) of section 7,269
5711.22 of the Revised Code (F) TWENTY-FIVE PER CENT in the case 7,270
of an interexchange telecommunications company; 7,272
(H)(G) Twenty-five per cent in the case of a water 7,274
transportation company. 7,275
Sec. 5727.15. When all the taxable property of a public 7,284
173
utility is located in one taxing district, the tax commissioner 7,285
shall apportion the total taxable value thereof to that taxing 7,286
district. 7,287
When taxable property of a public utility is located in 7,289
more than one taxing district, the commissioner shall apportion 7,290
the total taxable value thereof among the taxing districts as 7,291
follows: 7,292
(A)(1) In the case of a telegraph, interexchange 7,294
telecommunications, or telephone company that owns miles of wire 7,295
in this state, the value apportioned to each taxing district 7,297
shall be the same percentage of the total value apportioned to 7,298
all taxing districts as the miles of wire owned by the company 7,299
within the taxing district are to the total miles of wire owned 7,300
by the company within this state;
(2) In the case of a telegraph, interexchange 7,302
telecommunications, or telephone company that does not own miles 7,303
of wire in this state, the value apportioned to each taxing 7,304
district shall be the same percentage of the total value 7,305
apportioned to all taxing districts as the cost of the taxable
property physically located in the taxing district is of the 7,306
total cost of all taxable property physically located in this 7,307
state.
(B) In the case of a railroad company: 7,309
(1) The taxable value of real and personal property not 7,311
used in railroad operations shall be apportioned according to its 7,312
situs; 7,313
(2) The taxable value of personal property used in 7,315
railroad operations shall be apportioned to each taxing district 7,316
in proportion to the miles of track and trackage rights, weighted 7,317
to reflect the relative use of such personal property in each 7,318
taxing district; 7,319
(3) The taxable value of real property used in railroad 7,321
operations shall be apportioned to each taxing district in 7,322
proportion to its relative value in each taxing district. 7,323
174
(C) In the case of an electric company: 7,325
(1) Seventy per cent of the THE TAXABLE value of all 7,327
production equipment and of all station equipment that is not 7,328
production equipment shall be apportioned to the taxing district 7,329
in which such property is physically located; and 7,330
(2) The remaining value of such property, together with 7,332
the value of all other taxable PERSONAL property, shall be 7,333
apportioned to each taxing district in the per cent PROPORTION 7,335
that the cost of all transmission and distribution THE TAXABLE 7,337
PERSONAL property physically located in the EACH taxing district 7,339
is of the total cost of all transmission and distribution TAXABLE 7,340
PERSONAL property physically located in this state. 7,341
(3) If an electric company's taxable value for the current 7,343
year includes the value of any production equipment at a plant at 7,344
which the initial cost of the plant's production equipment 7,345
exceeded one billion dollars, then prior to making the 7,346
apportionments required for that company by divisions (C)(1) and 7,347
(2) of this section, the tax commissioner shall do the following: 7,348
(a) Subtract four hundred twenty million dollars from the 7,350
total taxable value of the production equipment at that plant for 7,351
the current tax year. 7,352
(b) Multiply the difference thus obtained by a fraction, 7,354
the numerator of which is the portion of the taxable value of 7,355
that plant's production equipment included in the company's total 7,356
value for the current tax year, and the denominator of which is 7,357
the total taxable value of such equipment included in the total 7,358
taxable value of all electric companies for such year. 7,359
(c) Apportion the product thus obtained to taxing 7,361
districts in the manner prescribed in division (C)(2) of this 7,362
section. 7,363
(d) Deduct the amounts so apportioned from the taxable 7,365
value of the company's production equipment at the plant, prior 7,366
to making the apportionments required by divisions (C)(1) and (2) 7,367
of this section. 7,368
175
For purposes of division (C) of this section, "initial 7,370
cost" applies only to production equipment of plants placed in 7,371
commercial operation on or after January 1, 1987, and means the 7,372
cost of all production equipment at a plant for the first year 7,373
the plant's equipment was subject to taxation. 7,374
(D) In the case of all other public utilities, the value 7,376
of the property to be apportioned shall be apportioned to each 7,377
taxing district in proportion to the entire value of such 7,378
property within this state. 7,379
Sec. 5727.30. Each public utility, except ELECTRIC 7,388
COMPANIES, RURAL ELECTRIC COMPANIES, AND railroad companies, 7,389
shall be subject to an annual excise tax, as provided by sections 7,391
5727.31 to 5727.62 of the Revised Code, for the privilege of 7,392
owning property in this state or doing business in this state 7,393
during the twelve-month period next succeeding the period upon 7,394
which the tax is based. The tax shall be imposed against each
such public utility which THAT, on the first day of such 7,396
twelve-month period, owns property in this state or is doing 7,398
business in this state, and the lien for the tax, including any 7,400
penalties and interest accruing thereon, shall attach on such day 7,401
to the property of the public utility in this state.
Sec. 5727.31. (A) Each public utility, except railroad 7,410
companies, doing business or owning property in this state shall 7,411
SUBJECT TO THE TAX IMPOSED UNDER SECTION 5727.30 OF THE REVISED 7,412
CODE, annually, on or before the first day of August, SHALL file 7,413
with the tax commissioner a statement in such form as the 7,414
commissioner prescribes. 7,415
(B)(1) Annually, on or before the fifteenth day of October 7,417
of the current year, each public utility subject to the excise 7,418
taxes levied by this chapter whose estimated excise taxes for the 7,419
current year as based upon the statement required to be filed in 7,420
that year by division (A) of this section are, in the case of a 7,421
public utility other than a natural gas company, one thousand 7,422
dollars or more, or are, in the case of a natural gas company, 7,423
176
three hundred twenty-five thousand dollars or more, shall file 7,424
with the treasurer of state a report, in such form as the tax 7,425
commissioner prescribes, showing the amount of excise tax 7,426
estimated to be charged or levied pursuant to law for the current 7,427
year upon the basis of such annual statement, and shall remit a 7,428
portion of the estimated excise taxes shown to be due by the 7,429
report. The portion of the estimated excise taxes due at the 7,430
time the report is filed shall be one-third of its total excise 7,431
taxes estimated to be charged or levied for the current year 7,432
based upon the annual statement filed under division (A) of this 7,433
section. 7,434
(2) Annually, on or before the first day of March and 7,436
June, each public utility subject to the excise taxes levied by 7,437
this chapter whose excise taxes as based upon its last preceding 7,438
annual statement filed under division (A) of this section prior 7,439
to the first day of January were, in the case of a public utility 7,440
other than a natural gas company, one thousand dollars or more, 7,441
or were, in the case of a natural gas company, three hundred 7,442
twenty-five thousand dollars or more, shall file with the 7,443
treasurer of state a report, in such form as the tax commissioner 7,444
prescribes, showing the amount of excise tax charged or levied 7,445
pursuant to law upon the basis of such annual statement, and 7,446
shall remit a portion of the excise taxes shown to be due by each 7,447
such report. The portion of the excise taxes due at the time 7,448
each such report is filed shall be one-third of its total excise 7,449
taxes so charged or levied based upon such annual statement. 7,450
(C) Any public utility subject to the excise taxes imposed 7,452
by this chapter SECTION 5727.30 OF THE REVISED CODE whose tax as 7,454
certified under section 5727.38 of the Revised Code in a year 7,455
equals or exceeds the amount specified for that year in section 7,456
5727.311 of the Revised Code shall make the payments required 7,457
under this section in the second ensuing and each succeeding year 7,458
in the manner prescribed by section 5727.311 of the Revised Code, 7,459
except as otherwise prescribed by that section. 7,460
177
(D)(1) For purposes of this section, a report required to 7,462
be filed under division (B) of this section is considered filed 7,463
when it is received by the treasurer of state. 7,464
(2) For purposes of this section and sections 5727.311 and 7,466
5727.42 of the Revised Code, remittance of an excise tax required 7,467
to be made under this section is considered to be made when the 7,468
remittance is received by the treasurer of state, or when 7,469
credited to an account designated by the treasurer of state for 7,470
the receipt of tax remittances. 7,471
Sec. 5727.311. (A) Any public utility subject to an 7,480
excise tax imposed by this chapter SECTION 5727.30 OF THE REVISED 7,481
CODE whose tax as certified by the tax commissioner under section 7,483
5727.38 of the Revised Code in the year indicated in the 7,484
following schedule equals or exceeds the amount indicated for 7,485
that year in the schedule FIFTY THOUSAND DOLLARS shall make each 7,487
payment required under division (B) of section 5727.31 of the 7,488
Revised Code for the second ensuing and each succeeding year by 7,489
electronic funds transfer as prescribed by division (B) of this 7,490
section. Year for which 7,491
tax was certified 1992 1993 and 7,492
thereafter
Amount of tax $100,000 $50,000 7,493
certified
If the tax certified by the tax commissioner in each of two 7,495
consecutive years beginning with 1993 is less than fifty thousand 7,496
dollars, the public utility is relieved of the requirement to 7,497
remit taxes by electronic funds transfer for the year that next 7,498
follows the second of the consecutive years in which the tax 7,499
certified is less than fifty thousand dollars, and is relieved of 7,500
that requirement for each succeeding year unless the tax 7,501
certified in a subsequent year equals or exceeds fifty thousand 7,502
dollars. The tax commissioner shall notify each public utility 7,503
required to remit taxes by electronic funds transfer of the 7,504
178
public utility's obligation to do so, shall maintain an updated 7,505
list of those public utilities, and shall timely certify the list 7,506
and any additions thereto or deletions therefrom to the treasurer 7,507
of state. Failure by the tax commissioner to notify a public 7,508
utility subject to this section to remit taxes by electronic 7,509
funds transfer does not relieve the public utility of its 7,510
obligation to remit taxes by electronic funds transfer. 7,511
(B) Public utilities required by this section to remit 7,513
periodic payments by electronic funds transfer shall remit such 7,514
payments to the treasurer of state in the manner prescribed by 7,515
rules adopted by the treasurer OF STATE under section 113.061 of 7,516
the Revised Code. The payment of public utility excise taxes by 7,517
electronic funds transfer does not affect a public utility's 7,518
obligation to file the annual statement and periodic reports in 7,519
the manner and at the times prescribed by section 5727.31 of the 7,520
Revised Code. 7,521
A public utility required by this section to remit taxes by 7,523
electronic funds transfer may apply to the treasurer of state in 7,524
the manner prescribed by the treasurer OF STATE to be excused 7,525
from that requirement. The treasurer of state may excuse the 7,526
public utility from remittance by electronic funds transfer for 7,527
good cause shown for the period of time requested by the public 7,528
utility or for a portion of that period. The treasurer OF STATE 7,529
shall notify the tax commissioner and the public utility of the 7,530
treasurer's TREASURER OF STATE'S decision as soon as is 7,531
practicable. 7,532
(C) If a public utility required by this section to remit 7,534
taxes by electronic funds transfer remits those taxes by some 7,535
means other than by electronic funds transfer as prescribed by 7,536
this section and the rules adopted by the treasurer of state, and 7,537
the treasurer OF STATE determines that the failure to remit taxes 7,538
as required was not due to reasonable cause or was due to willful 7,539
neglect, the treasurer OF STATE may impose an additional charge 7,540
on the public utility equal to five per cent of the amount of the 7,541
179
taxes required to be paid by electronic funds transfer, but not 7,542
to exceed five thousand dollars. Any additional charge imposed 7,543
under this section is in addition to any other penalty or charge 7,544
imposed under this chapter, and shall be considered as revenue 7,545
arising from excise taxes imposed by this chapter. 7,546
No additional charge shall be assessed under this division 7,548
against a public utility that has been notified of its obligation 7,549
to remit taxes under this section and that remits its first two 7,550
tax payments after such notification by some means other than 7,551
electronic funds transfer. The additional charge may be assessed 7,552
upon the remittance of any subsequent tax payment that the public 7,553
utility remits by some means other than electronic funds 7,554
transfer. 7,555
Sec. 5727.32. The statement required by section 5727.31 of 7,564
the Revised Code for the purpose of the public utility excise tax 7,565
shall contain: 7,566
(A) The name of the company; 7,568
(B) The nature of the company, whether a person, 7,570
association, or corporation, and under the laws of what state or 7,571
country organized; 7,572
(C) The location of its principal office; 7,574
(D) The name and post-office address of the president, 7,576
secretary, auditor, treasurer, and superintendent or general 7,577
manager; 7,578
(E) The name and post-office address of the chief officer 7,580
or managing agent of the company in this state; 7,581
(F) The amount of the excise taxes paid or to be paid with 7,583
the reports made during the current calendar year as provided by 7,584
section 5727.31 of the Revised Code; 7,585
(G) In the case of telegraph and telephone companies: 7,587
(1) The gross receipts from all sources, whether messages, 7,589
telephone tolls, rentals, or otherwise, for business done within 7,590
this state, including all sums earned or charged, whether 7,591
actually received or not, for the year ending on the thirtieth 7,592
180
day of June, and the company's proportion of gross receipts for 7,593
business done by it within this state in connection with other 7,594
companies, firms, corporations, persons, or associations, but 7,595
excluding all of the following: 7,596
(a) All of the receipts derived wholly from interstate 7,598
business or business done for or with the federal government; 7,599
(b) The receipts of amounts billed on behalf of other 7,601
entities; 7,602
(c) The receipts from sales to other telephone companies 7,604
for resale; 7,605
(d) For the year ending June 30, 1990, and each subsequent 7,607
year, receipts RECEIPTS from sales to providers of 7,608
telecommunications service for resale, receipts from incoming or 7,610
outgoing wide area transmission service or wide area transmission 7,611
type service, including eight hundred or eight-hundred-type 7,612
service, and receipts from private communications service. 7,613
As used in this division, "receipts from sales to other 7,615
telephone companies for resale" and "receipts from sales to 7,616
providers of telecommunications service for resale" include, but 7,617
are not limited to, receipts of carrier access charges. "Carrier 7,618
access charges" means compensation paid to the taxpayer telephone 7,619
company by another telephone company or by a provider of 7,620
telecommunications service for the use of the taxpayer's 7,621
facilities to originate or terminate telephone calls or 7,622
telecommunications service. 7,623
(2) The total gross receipts for such period from business 7,625
done within this state. 7,626
(H) In the case of all public utilities, except ELECTRIC 7,628
COMPANIES, RURAL ELECTRIC COMPANIES, telegraph COMPANIES, and 7,630
telephone companies:
(1) The gross receipts of the company, actually received, 7,632
from all sources for business done within this state for the year 7,633
next preceding the first day of May, including the company's 7,634
proportion of gross receipts for business done by it within this 7,635
181
state in connection with other companies, firms, corporations, 7,636
persons, or associations, but excluding all of the following: 7,637
(a) Receipts from interstate business or business done for 7,639
the federal government; 7,640
(b) Receipts from sales to other public utilities for 7,642
resale, provided such other public utility is required to file a 7,643
statement pursuant to section 5727.31 of the Revised Code; 7,644
(c) For the year ending April 30, 1990, and each 7,646
subsequent year, receipts from the transmission or delivery of 7,647
electricity to or for a rural electric company, provided that the 7,648
electricity that has been so transmitted or delivered is for 7,649
resale by the rural electric company; 7,650
(d) Receipts of an electric company, derived from the 7,652
provision of electricity and other services to a qualified former 7,653
owner of the production facilities which generated the 7,654
electricity from which those receipts were derived. As used in 7,655
this division, a "qualified former owner" means a person who 7,656
meets both of the following conditions: 7,657
(i) On or before October 11, 1991, the person had sold to 7,659
an electric company part of the production facility at which the 7,660
electricity is generated, and, for at least twenty years prior to 7,661
that sale, the facility was used to generate electricity, but it 7,662
was not owned in whole or in part during that period by an 7,663
electric company. 7,664
(ii) At the time the electric company provided the 7,666
electricity or other services for which the exclusion is claimed, 7,667
the person, or a successor or assign of the person, owned not 7,668
less than a twenty per cent ownership of the production facility 7,669
and the rights to not less than twenty per cent of the production 7,670
of that facility; and the person, or a successor or assign of the 7,671
person, engaged primarily in a business other than providing 7,672
electricity to others. 7,673
(e) Receipts of a natural gas company of amounts billed on 7,675
behalf of other entities. Transportation and billing and 7,676
182
collection fees charged to other entities shall be included in 7,677
the gross receipts of a natural gas company. 7,678
(2) The total gross receipts of such company for such 7,680
period in this state from business done within the state. 7,681
The reports required by section 5727.31 of the Revised Code 7,683
shall contain: 7,684
(a) The name and principal mailing address of the company; 7,686
(b) The total amount of the gross receipts excise taxes 7,688
charged or levied as based upon its last preceding annual 7,689
statement filed prior to the first day of January of the year in 7,690
which such report is filed; 7,691
(c) The amount of the excise taxes due with the report as 7,693
provided by section 5727.31 of the Revised Code. 7,694
Sec. 5727.33. (A) For the purpose of computing the public 7,703
utility excise tax, the tax commissioner shall ascertain and 7,704
determine the entire gross receipts actually received from all 7,705
sources, excluding the receipts described in divisions (B), (C), 7,706
AND (D), and (E) of this section, of each electric, rural 7,707
electric, natural gas, pipe-line, water-works, heating, and water 7,708
transportation company for business done within this state for 7,709
the year ending on the thirtieth day of April, and of each 7,710
telegraph and telephone company for business done within this 7,711
state for the year ending on the thirtieth day of June. 7,712
(B) In ascertaining and determining the gross receipts of 7,714
each of the companies named in this section, the commissioner 7,715
shall exclude all of the following: 7,716
(1) All receipts derived wholly from interstate business; 7,718
(2) All receipts derived wholly from business done for or 7,720
with the federal government; 7,721
(3) For the year ending April 30, 1990, and each 7,723
subsequent year, all receipts derived wholly from the 7,724
transmission or delivery of electricity to or for a rural 7,725
electric company, provided that the electricity that has been so 7,726
transmitted or delivered is for resale by the rural electric 7,727
183
company; 7,728
(4) All receipts from the sale of merchandise; 7,730
(5)(4) All receipts from sales to other public utilities, 7,732
except railroad, telegraph, and telephone companies, for resale, 7,733
provided the other public utility is required to file a statement 7,734
pursuant to section 5727.31 of the Revised Code. 7,735
(C) In ascertaining and determining the gross receipts of 7,737
a telephone company, the commissioner shall exclude all of the 7,739
following: 7,740
(1) For the year ending June 30, 1988, and each subsequent 7,742
year, receipts RECEIPTS of amounts billed on behalf of other 7,743
entities; 7,744
(2) For the year ending June 30, 1988, and each subsequent 7,746
year, receipts RECEIPTS from sales to other telephone companies 7,747
for resale, as defined in division (G) of section 5727.32 of the 7,748
Revised Code; 7,749
(3) For the year ending June 30, 1990, and each subsequent 7,751
year, receipts RECEIPTS from incoming or outgoing wide area 7,752
transmission service or wide area transmission type service, 7,754
including eight hundred or eight-hundred-type service; 7,755
(4) For the year ending June 30, 1990, and each subsequent 7,757
year, receipts RECEIPTS from private communications service as 7,758
described in division (AA)(2) of section 5739.01 of the Revised 7,760
Code;
(5) For the year ending June 30, 1990, and each subsequent 7,762
year, receipts RECEIPTS from sales to providers of 7,763
telecommunications service for resale, as defined in division (G) 7,765
of section 5727.32 of the Revised Code. 7,766
(D) In ascertaining and determining the gross receipts of 7,768
an electric company, the commissioner shall exclude receipts 7,769
derived from the provision of electricity and other services to a 7,770
qualified former owner of the production facilities which 7,771
generated the electricity from which those receipts were derived. 7,772
As used in this division, a "qualified former owner" means a 7,773
184
person who meets both of the following conditions: 7,774
(1) On or before October 11, 1991, the person had sold to 7,776
an electric company part of the production facility at which the 7,777
electricity is generated, and, for at least twenty years prior to 7,778
that sale, the facility was used to generate electricity, but it 7,779
was not owned in whole or in part during that period by an 7,780
electric company. 7,781
(2) At the time the electric company provided the 7,783
electricity or other services for which the exclusion is claimed, 7,784
the person, or a successor or assign of the person, owned not 7,785
less than a twenty per cent ownership of the production facility 7,786
and the rights to not less than twenty per cent of the production 7,787
of that facility. 7,788
(E) In ascertaining and determining the gross receipts of 7,790
a natural gas company, the commissioner shall exclude receipts of 7,791
amounts billed on behalf of other entities. Transportation and 7,792
billing and collection fees charged to other entities shall be 7,793
included in the gross receipts of a natural gas company. 7,794
The amount ascertained by the commissioner under this 7,796
section, less a deduction of twenty-five thousand dollars, shall 7,797
be the gross receipts of such companies for business done within 7,798
this state for that year. 7,799
Sec. 5727.38. On or before the first Monday of November, 7,808
annually, the tax commissioner shall assess an excise tax against 7,809
each public utility except railroad companies SUBJECT TO THE 7,810
EXCISE TAX UNDER SECTION 5727.30 OF THE REVISED CODE. The tax 7,811
shall be computed by multiplying the gross receipts as determined 7,813
by the commissioner under section 5727.33 of the Revised Code by 7,815
six and three-fourths per cent in the case of pipe-line companies
and four and three-fourths per cent in the case of all other 7,816
companies. The minimum tax for any such company for owning 7,817
property or doing business in this state shall be ten FIFTY 7,818
dollars. The assessment shall be certified to the taxpayer and 7,820
treasurer of state.
185
Sec. 5727.42. (A) The treasurer of state shall maintain a 7,829
list of all excise taxes levied and payments made pursuant to 7,830
this chapter THE ANNUAL EXCISE TAX IMPOSED BY SECTION 5727.30 OF 7,832
THE REVISED CODE. The treasurer of state shall collect and the 7,833
taxpayer shall pay all taxes and any penalties thereon. Payments 7,834
may be made by mail, in person, by electronic funds transfer if 7,835
required to do so by section 5727.311 of the Revised Code, or by 7,836
any other means authorized by the treasurer of state. The 7,837
treasurer of state may adopt rules concerning the methods and 7,838
timeliness of payment. 7,839
(B) Each tax bill issued pursuant to this section shall 7,841
separately reflect the taxes due, due date, and any other 7,842
information considered necessary. Except as otherwise provided 7,843
in division (F) of this section, the last day on which payment 7,844
may be made without penalty shall be at least twenty but not more 7,845
than thirty days from the date of mailing the tax bill. The 7,846
treasurer of state shall mail the tax bill, and the mailing 7,847
thereof shall be prima-facie evidence of receipt thereof by the 7,848
taxpayer. 7,849
(C) The treasurer of state shall refund taxes as provided 7,851
in this section, but no refund shall be made to a taxpayer having 7,852
a delinquent claim certified pursuant to this section that 7,853
remains unpaid. The treasurer of state may consult the attorney 7,854
general regarding such claims. 7,855
(D) Within twenty days after receipt of any excise tax 7,857
assessment certified to him THE TREASURER OF STATE, the treasurer 7,859
of state shall:
(1) Ascertain the difference between the total taxes shown 7,861
on such assessment and the sum of all advance ESTIMATED payments, 7,863
exclusive of any penalties thereon, previously made for that 7,864
year.
(2) If the difference is a deficiency, the treasurer of 7,866
state shall issue a tax bill. 7,867
(3) If the difference is an excess, the treasurer of state 7,869
186
shall certify the name of the taxpayer and the amount to be 7,870
refunded to the director of budget and management for payment to 7,871
the taxpayer. 7,872
If the taxpayer has a deficiency for one tax year and an 7,874
excess for another tax year, or any combination thereof for more 7,875
than two years, the treasurer of state may determine the net 7,876
result and, depending on such result, proceed to mail a tax bill 7,877
or certify a refund. 7,878
(E) If a taxpayer fails to pay all taxes on or before the 7,880
due date shown on the tax bill, or fails to make an advance 7,881
ESTIMATED payment on or before the due date prescribed in 7,883
division (B) of section 5727.31 of the Revised Code, but makes 7,884
payment within ten calendar days of such date, the treasurer of 7,885
state shall add a penalty equal to five per cent of the amount 7,886
that should have been timely paid. If payment is not made within 7,887
ten days of such date, the treasurer of state shall add a penalty 7,888
equal to fifteen per cent of the amount that should have been 7,889
timely paid. The treasurer of state shall prepare a delinquent 7,890
claim for each tax bill on which penalties were added and certify 7,891
such claims to the attorney general and tax commissioner. The 7,892
attorney general shall proceed to collect the delinquent taxes 7,893
and penalties thereon in the manner prescribed by law and notify 7,894
the treasurer of state and tax commissioner of all collections. 7,895
(F) The last day on which a natural gas company that is 7,897
not required to make payments under division (B) of section 7,898
5727.31 of the Revised Code may pay its taxes without penalty 7,899
shall be the fifteenth day of March of the year following the 7,900
year in which the commissioner is required to certify his THE 7,901
assessment of the company's tax under section 5727.38 of the 7,902
Revised Code. The tax due date shall be reflected on the tax 7,903
bill. 7,904
Sec. 5727.45. Four and two-tenths per cent of all excise 7,913
taxes and penalties collected under sections 5727.01 to 5727.62 7,914
of the Revised Code shall be credited to the local government 7,915
187
fund for distribution in accordance with section 5747.50 of the 7,916
Revised Code, six-tenths of one per cent shall be credited to the 7,917
local government revenue assistance fund for distribution in 7,919
accordance with section 5747.61 of the Revised Code, and
ninety-five and two-tenths per cent shall be credited to the 7,920
general revenue fund. 7,921
On or before the first day of December, annually, the tax 7,923
commissioner shall certify to the treasurer of state the amounts 7,924
to be credited to the local government fund and local government 7,925
revenue assistance fund from the general revenue fund to ensure 7,926
that the sum of the amounts credited to the local government fund 7,927
and local government revenue assistance fund for the calendar 7,928
year equals the sum that would have been credited during that 7,929
year if the credit authorized by section 5727.391 of the Revised 7,930
Code did not exist. The treasurer shall credit any such 7,931
additional amounts to the two funds not later than the fifth day 7,932
of December, annually. 7,933
Sec. 5727.47. A copy of each assessment certified pursuant 7,946
to section 5727.23, 5727.231, or 5727.38 of the Revised Code 7,947
shall be mailed to the public utility, and its mailing shall be 7,948
prima-facie evidence of its receipt by the public utility to 7,949
which it is addressed. If a public utility objects to any 7,950
assessment certified to it pursuant to such sections, it may file 7,951
a petition for reassessment with the tax commissioner. The 7,952
petition must be made in writing, signed by the authorized agent 7,953
of the utility having knowledge of the facts, and filed with the 7,954
commissioner, in person or by certified mail, within thirty days 7,955
from the date that the assessment was mailed. If the petition is 7,956
filed by certified mail, the date of the United States postmark 7,957
placed on the sender's receipt by the postal employee to whom the 7,958
petition is presented shall be treated as the date of filing. A 7,959
true copy of the assessment objected to shall be attached to the 7,960
petition and shall be incorporated by reference into the 7,961
petition, but the failure to attach a copy of the assessment and 7,962
188
incorporate it by reference does not invalidate the petition. The 7,964
petition also shall indicate the utility's objections, but
additional objections may be raised in writing if received prior 7,965
to the date shown on the final determination by the commissioner. 7,966
Notwithstanding the fact that a petition has been filed, 7,968
the tax with respect to the assessment objected to shall be paid 7,969
as required by law. The acceptance of the tax payment by the 7,970
treasurer of state or any county treasurer shall not prejudice 7,971
any claim for taxes on final determination by the commissioner or 7,972
final decision by the board of tax appeals or any court. 7,973
Upon receipt of a properly filed petition, the commissioner 7,975
shall notify the treasurer of state or the auditor of each county 7,976
to which the assessment objected to has been certified. 7,977
Unless the petitioner waives a hearing, the commissioner 7,979
shall assign a time and place for the hearing on the petition and 7,980
notify the petitioner of the time and place of the hearing by 7,981
personal service or certified mail, but the commissioner may 7,982
continue the hearing from time to time if necessary. 7,983
The commissioner may make such correction to the assessment 7,985
as he THE COMMISSIONER finds proper. The commissioner shall 7,986
serve a copy of his THE COMMISSIONER'S final determination on the 7,988
petitioner by personal service or certified mail, and his THE 7,989
COMMISSIONER'S decision in the matter shall be final, subject to 7,991
appeal as provided in section 5717.02 of the Revised Code. The 7,992
commissioner also shall transmit a copy of his THE final 7,993
determination to the treasurer of state or applicable county 7,994
auditor. In the absence of any further appeal, or when a 7,995
decision of the board of tax appeals or of any court to which the 7,996
decision has been appealed becomes final, the commissioner shall 7,997
notify the public utility and, as appropriate, the treasurer of 7,998
state who shall proceed under section 5727.42 of the Revised 7,999
Code, or the applicable county auditor who shall proceed under 8,000
section 5727.471 of the Revised Code. The notification is not 8,001
subject to further appeal. 8,002
189
Sec. 5727.53. The taxes, fees, and penalties provided by 8,011
sections 5727.01 to 5727.62, inclusive, of the Revised Code, THIS 8,012
CHAPTER THAT ARE REMITTED TO THE TREASURER OF STATE may be 8,014
recovered by an action brought in the name of the state in the
court of common pleas of Franklin County COUNTY, or of any county 8,016
in which such public utility is doing business, or in which the 8,017
line of any street, suburban, or interurban railroad company or 8,018
railroad company is located, and such court of common pleas shall 8,019
have jurisdiction of such THE action regardless of the amount 8,020
involved. The attorney general, on request of the tax 8,021
commissioner, shall institute such action in the court of common 8,022
pleas of Franklin County COUNTY or of any of such counties the 8,023
commissioner directs. In any such action it shall be sufficient 8,024
to allege that the tax, fee, or penalty sought to be recovered 8,025
stands charged on the delinquent duplicate of the treasurer of 8,026
state, and that the same has been unpaid for a period of thirty 8,027
days after having been placed thereon. Sums recovered in any 8,028
such action shall be paid into the state treasury to the credit 8,029
of the general revenue fund IN THE SAME MANNER AS THE TAX. 8,030
Sec. 5727.60. If a public utility required to file a 8,039
report with the tax commissioner by sections 5727.02 to 5727.62, 8,040
inclusive, of the Revised Code, PERSON fails to make such FILE A 8,042
report, it shall be subject to a penalty of ten dollars per day 8,044
for each day's omission after the time limited for making such
report WITHIN THE TIME PRESCRIBED BY SECTION 5727.08 OR 5727.31 8,045
OF THE REVISED CODE, INCLUDING ANY EXTENSIONS OF TIME GRANTED BY 8,047
THE TAX COMMISSIONER, A PENALTY OF FIFTY DOLLARS PER MONTH, NOT 8,048
TO EXCEED FIVE HUNDRED DOLLARS, MAY BE IMPOSED FOR EACH MONTH OR 8,049
FRACTION OF A MONTH ELAPSING BETWEEN THE DUE DATE OF THE REPORT, 8,050
INCLUDING ANY EXTENSIONS, AND THE DATE THE REPORT WAS FILED. THE 8,051
PENALTY UNDER THIS SECTION FOR FAILING TO FILE A REPORT REQUIRED 8,052
BY SECTION 5727.08 OF THE REVISED CODE SHALL BE PAID INTO THE 8,053
STATE GENERAL REVENUE FUND. IF THE PENALTY IS NOT PAID WITHIN
FIFTEEN DAYS AFTER NOTICE OF THE PENALTY IS MAILED TO THE PERSON 8,054
190
WHO FAILED TO TIMELY FILE THE REPORT, THE TAX COMMISSIONER SHALL 8,055
CERTIFY THE PENALTY AS A CLAIM TO THE ATTORNEY GENERAL FOR 8,056
COLLECTION. THE PENALTY UNDER THIS SECTION FOR FAILING TO FILE 8,057
THE REPORT REQUIRED BY SECTION 5727.31 OF THE REVISED CODE SHALL 8,058
BE DEPOSITED INTO THE STATE TREASURY IN THE SAME MANNER AS THE 8,059
TAX IS DEPOSITED, AND THE COMMISSIONER MAY COLLECT THE PENALTY BY 8,061
ASSESSMENT PURSUANT TO SECTION 5727.38 OF THE REVISED CODE. THE 8,062
TAX COMMISSIONER MAY ABATE THIS PENALTY IN FULL OR IN PART. 8,063
Sec. 5727.61. Every public utility required by law to make 8,072
returns, statements, or reports to the tax commissioner UNDER 8,073
SECTIONS 5727.01 TO 5727.62 OF THE REVISED CODE shall file 8,075
therewith, in such form as the commissioner prescribes, an
affidavit subscribed and sworn to by a person or officer having 8,076
knowledge of the facts setting forth that such public utility has 8,077
not, during the preceding year, except as permitted by sections 8,078
3517.082, 3599.03, and 3599.031 of the Revised Code, directly or 8,079
indirectly paid, used or offered, consented, or agreed to pay or 8,080
use any of its money or property for or in aid of or opposition 8,081
to a political party, a candidate for election or nomination to 8,083
public office, or a political action committee, legislative 8,084
campaign fund, or organization that supports or opposes any such 8,085
candidate or in any manner used any of its money or property for 8,086
any partisan political purpose whatever, or for the reimbursement 8,087
or indemnification of any person for money or property so used. 8,088
Such forms of affidavit as the commissioner prescribes shall be 8,089
attached to or made a part of the return, statement, or report 8,090
required to be made by such public utility under sections 5727.01 8,091
to 5727.62 of the Revised Code. 8,092
Sec. 5727.72. No officer, employee, or agent of a 8,101
telegraph or telephone company PERSON SUBJECT TO THIS CHAPTER 8,102
shall refuse to attend before a lawful board of appraisers and 8,103
assessors THE DEPARTMENT OF TAXATION when required to do so, or 8,104
refuse to bring with him THE OFFICER, EMPLOYEE, OR AGENT and 8,106
submit for inspection any books or papers of such company PERSON 8,107
191
in his THE OFFICER'S, EMPLOYEE'S, OR AGENT'S possession, custody, 8,109
or control, or refuse to answer any questions put to him THE 8,110
OFFICER, EMPLOYEE, OR AGENT concerning the organization, 8,112
business, or property of such company PERSON.
Sec. 5727.80. AS USED IN SECTIONS 5727.80 TO 5727.95 OF 8,114
THE REVISED CODE: 8,116
(A) "ELECTRIC DISTRIBUTION COMPANY" MEANS EITHER OF THE 8,119
FOLLOWING:
(1) A PERSON WHO DISTRIBUTES ELECTRICITY THROUGH A METER 8,121
OF AN END USER IN THIS STATE; 8,122
(2) THE END USER OF ELECTRICITY IN THIS STATE, IF THE END 8,125
USER OBTAINS ELECTRICITY THAT IS NOT DISTRIBUTED OR TRANSMITTED 8,126
TO THE END USER BY AN ELECTRIC DISTRIBUTION COMPANY THAT IS 8,127
REQUIRED TO REMIT THE TAX IMPOSED BY SECTION 5727.81 OF THE 8,129
REVISED CODE. "ELECTRIC DISTRIBUTION COMPANY" DOES NOT INCLUDE 8,130
THE END USER OF ELECTRICITY IN THIS STATE WHO SELF-GENERATES 8,131
ELECTRICITY THAT IS USED DIRECTLY BY THAT END USER ON THE SAME 8,132
SITE THAT THE ELECTRICITY IS GENERATED. 8,133
(B) "KILOWATT HOUR" MEANS ONE THOUSAND WATT HOURS OF 8,135
ELECTRICITY. 8,136
(C) "METER OF AN END USER IN THIS STATE" MEANS THE LAST 8,139
METER USED TO MEASURE THE KILOWATT HOURS DISTRIBUTED BY AN 8,140
ELECTRIC DISTRIBUTION COMPANY TO A LOCATION IN THIS STATE, THE 8,141
LAST METER LOCATED OUTSIDE OF THIS STATE THAT IS USED TO MEASURE 8,142
THE KILOWATT HOURS CONSUMED AT A LOCATION IN THIS STATE, OR, IF 8,143
NO METER IS USED, THE ESTIMATED KILOWATT HOURS DISTRIBUTED TO AN 8,144
UNMETERED LOCATION IN THIS STATE.
(D) "PERSON" HAS THE SAME MEANING AS IN SECTION 5701.01 OF 8,146
THE REVISED CODE, BUT ALSO INCLUDES A POLITICAL SUBDIVISION OF 8,147
THE STATE. 8,148
(E) "MUNICIPAL ELECTRIC UTILITY" MEANS A MUNICIPAL 8,151
CORPORATION THAT OWNS OR OPERATES A SYSTEM FOR THE DISTRIBUTION 8,152
OF ELECTRICITY.
(F) "QUALIFIED END USER" MEANS AN END USER OF ELECTRICITY 8,154
192
THAT USES MORE THAN THREE MILLION KILOWATT HOURS OF ELECTRICITY 8,156
AT ONE MANUFACTURING LOCATION IN THIS STATE FOR A CALENDAR DAY 8,157
FOR USE IN A MANUFACTURING PROCESS THAT FEATURES AN
ELECTROCHEMICAL REACTION IN WHICH ELECTRONS FROM DIRECT CURRENT 8,159
ELECTRICITY REMAIN A PART OF THE PRODUCT BEING MANUFACTURED. 8,160
(G) "SELF-ASSESSING PURCHASER" MEANS A PURCHASER THAT 8,162
MEETS ALL THE REQUIREMENTS OF, AND PAYS THE EXCISE TAX IN 8,163
ACCORDANCE WITH, DIVISION (C) OF SECTION 5727.81 OF THE REVISED 8,164
CODE.
(H) "SIX MONTH REVENUE DIFFERENTIAL FOR SELF-ASSESSING 8,166
PURCHASERS" MEANS THIRTY-ONE MILLION SIX HUNDRED FIFTY THOUSAND 8,167
DOLLARS LESS THE AMOUNT PAID UNDER DIVISION (C)(1)(a) OF SECTION 8,169
5727.81 OF THE REVISED CODE BY ALL SELF-ASSESSING PURCHASERS FOR 8,171
THE SIX-MONTH PERIOD ENDING IN THE MONTH PRIOR TO THE DATE OF THE 8,173
CALCULATIONS REQUIRED UNDER DIVISIONS (C)(1)(b) AND (c) OF 8,174
SECTION 5727.81 OF THE REVISED CODE. 8,175
(I) "TWELVE MONTH REVENUE DIFFERENTIAL FOR SELF-ASSESSING 8,177
PURCHASERS" MEANS SIXTY-THREE MILLION THREE HUNDRED THOUSAND 8,178
DOLLARS LESS THE AMOUNT PAID UNDER DIVISION (C)(1)(a) OF SECTION 8,180
5727.81 OF THE REVISED CODE BY ALL SELF-ASSESSING PURCHASERS FOR 8,181
THE TWELVE-MONTH PERIOD ENDING IN THE MONTH PRIOR TO THE DATE OF
THE CALCULATION REQUIRED UNDER DIVISION (C)(1)(d) OF SECTION 8,182
5727.81 OF THE REVISED CODE. 8,183
Sec. 5727.81. (A) FOR THE PURPOSE OF RAISING REVENUE FOR 8,186
PUBLIC EDUCATION AND STATE AND LOCAL GOVERNMENT OPERATIONS, AN 8,187
EXCISE TAX IS HEREBY LEVIED AND IMPOSED ON AN ELECTRIC 8,188
DISTRIBUTION COMPANY FOR ALL ELECTRICITY DISTRIBUTED BY SUCH 8,189
COMPANY THAT HAS MAY 1, 2001, AS PART OF ITS MEASUREMENT PERIOD, 8,190
AT THE FOLLOWING RATES PER KILOWATT HOUR OF ELECTRICITY 8,191
DISTRIBUTED IN A THIRTY-DAY PERIOD BY THE COMPANY THROUGH A METER 8,192
OF AN END USER IN THIS STATE:
KILOWATT HOURS DISTRIBUTED TO RATE PER 8,195
AN END USER KILOWATT HOUR 8,196
FOR THE FIRST 2,000 $.00465 8,197
193
FOR THE NEXT 2,001 TO 15,000 $.00419 8,198
FOR 15,001 AND ABOVE $.00363 8,199
THE ELECTRIC DISTRIBUTION COMPANY SHALL BASE THE MONTHLY 8,202
TAX ON THE KILOWATT HOURS OF ELECTRICITY DISTRIBUTED TO AN END 8,203
USER THROUGH THE METER OF THE END USER THAT IS NOT MEASURED FOR A 8,204
THIRTY-DAY PERIOD BY DIVIDING THE DAYS IN THE MEASUREMENT PERIOD 8,206
INTO THE TOTAL KILOWATT HOURS MEASURED DURING THE MEASUREMENT 8,207
PERIOD TO OBTAIN A DAILY AVERAGE USAGE. THE TAX SHALL BE 8,208
DETERMINED BY OBTAINING THE SUM OF DIVISIONS (A)(1), (2), AND (3) 8,209
OF THIS SECTION AND MULTIPLYING THAT AMOUNT BY THE NUMBER OF DAYS
IN THE MEASUREMENT PERIOD: 8,210
(1) MULTIPLYING $0.00465 PER KILOWATT HOUR FOR THE FIRST 8,212
SIXTY-SEVEN KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 8,213
(2) MULTIPLYING $0.00419 FOR THE NEXT SIXTY-EIGHT TO FIVE 8,215
HUNDRED KILOWATT HOURS DISTRIBUTED USING A DAILY AVERAGE; 8,216
(3) MULTIPLYING $0.00363 FOR THE REMAINING KILOWATT HOURS 8,218
DISTRIBUTED USING A DAILY AVERAGE. 8,219
EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, THE 8,221
ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX TO THE TREASURER 8,222
OF STATE IN ACCORDANCE WITH SECTION 5727.82 OF THE REVISED CODE. 8,224
ONLY THE DISTRIBUTION OF ELECTRICITY THROUGH A METER OF AN 8,227
END USER IN THIS STATE SHALL BE USED BY THE ELECTRIC DISTRIBUTION 8,228
COMPANY TO COMPUTE THE AMOUNT OR ESTIMATED AMOUNT OF TAX DUE. IN 8,229
THE EVENT A METER IS NOT ACTUALLY READ FOR A MEASUREMENT PERIOD, 8,230
THE ESTIMATED KILOWATT HOURS DISTRIBUTED BY AN ELECTRIC 8,231
DISTRIBUTION COMPANY TO COLLECT ITS DISTRIBUTION CHARGES MAY BE 8,232
USED.
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 8,234
EACH ELECTRIC DISTRIBUTION COMPANY SHALL PAY THE TAX IMPOSED BY 8,235
THIS SECTION IN ALL OF THE FOLLOWING CIRCUMSTANCES: 8,236
(1) THE ELECTRICITY IS DISTRIBUTED BY THE COMPANY THROUGH 8,238
A METER OF AN END USER IN THIS STATE; 8,239
(2) THE COMPANY IS DISTRIBUTING ELECTRICITY THROUGH A 8,241
METER LOCATED IN ANOTHER STATE, BUT THE ELECTRICITY IS CONSUMED 8,242
194
IN THIS STATE IN THE MANNER PRESCRIBED BY THE TAX COMMISSIONER; 8,244
(3) THE COMPANY IS DISTRIBUTING ELECTRICITY IN THIS STATE 8,246
WITHOUT THE USE OF A METER, BUT THE ELECTRICITY IS CONSUMED IN 8,247
THIS STATE AS ESTIMATED AND IN THE MANNER PRESCRIBED BY THE TAX 8,249
COMMISSIONER.
(C)(1)(a) A COMMERCIAL OR INDUSTRIAL PURCHASER THAT 8,252
RECEIVES ELECTRICITY THROUGH A METER OF AN END USER IN THIS STATE 8,253
AND CONSUMES, OVER THE COURSE OF THE PREVIOUS CALENDAR YEAR, MORE
THAN ONE HUNDRED TWENTY MILLION KILOWATT HOURS OF ELECTRICITY MAY 8,254
ELECT TO SELF-ASSESS THE EXCISE TAX IMPOSED BY THIS SECTION AT 8,255
THE RATE OF $.00075 PER KILOWATT HOUR AND FOUR PER CENT OF THE 8,256
TOTAL PRICE OF ELECTRICITY DELIVERED THROUGH A METER OF AN END 8,258
USER IN THIS STATE. PAYMENT OF THE TAX SHALL BE MADE DIRECTLY TO 8,259
THE TREASURER OF STATE IN ACCORDANCE WITH DIVISIONS (A)(3) AND 8,260
(4) OF SECTION 5727.82 OF THE REVISED CODE OR, IF THE ELECTRIC 8,261
DISTRIBUTION COMPANY SERVING THE SELF-ASSESSING PURCHASER IS A 8,262
MUNICIPAL ELECTRIC UTILITY AND THE PURCHASER IS WITHIN THE 8,263
MUNICIPAL CORPORATION'S CORPORATE LIMITS, TO SUCH MUNICIPAL 8,264
CORPORATION'S GENERAL FUND IN ACCORDANCE WITH DIVISION (A)(2) OF 8,265
SECTION 5727.82 OF THE REVISED CODE, AND UPON PAYING IN THIS 8,266
MANNER, THE SELF-ASSESSING PURCHASER SHALL NOT BE REQUIRED TO PAY 8,267
THE EXCISE TAX TO THE ELECTRIC DISTRIBUTION COMPANY FROM WHICH 8,268
ITS ELECTRICITY IS DELIVERED. 8,269
(b) ON OR BEFORE DECEMBER 10, 2001, THE TAX COMMISSIONER 8,271
SHALL CALCULATE THE SIX MONTH REVENUE DIFFERENTIAL FOR 8,273
SELF-ASSESSING PURCHASERS. IF THE SIX MONTH REVENUE DIFFERENTIAL 8,275
IS GREATER THAN FIVE HUNDRED THOUSAND DOLLARS, THE TAX
COMMISSIONER SHALL INCREASE THE PERCENTAGE OF TOTAL PRICE TAX 8,277
RATE TO BE CHARGED FOR THE SIX-MONTH PERIOD BEGINNING IN THE 8,278
MONTH FOLLOWING THAT IN WHICH THE CALCULATION IS DONE. THE NEW 8,279
TAX RATE SHALL BE THE RATE IN EFFECT DURING THE CURRENT PERIOD 8,280
MULTIPLIED BY THE SUM OF ONE PLUS THE PRODUCT OF (i) A FRACTION, 8,281
THE NUMERATOR OF WHICH IS THE SIX MONTH REVENUE DIFFERENTIAL 8,282
MULTIPLIED BY TWO AND THE DENOMINATOR OF WHICH IS THE AMOUNT PAID 8,283
195
DURING THE PERIOD BY ALL SELF-ASSESSING PURCHASERS ON THE
PERCENTAGE OF TOTAL PRICE BASIS AND (ii) A FRACTION, THE 8,284
NUMERATOR OF WHICH IS TOTAL KILOWATT HOURS CONSUMED DURING THE 8,285
PERIOD BY SELF-ASSESSING PURCHASERS AND THE DENOMINATOR OF WHICH 8,286
IS ELEVEN BILLION TWENTY-FIVE MILLION. 8,287
IF THE SIX MONTH REVENUE DIFFERENTIAL IS LESS THAN NEGATIVE 8,289
FIVE HUNDRED THOUSAND DOLLARS, THE TAX COMMISSIONER SHALL 8,290
DECREASE THE PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR 8,291
THE SIX MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN 8,292
WHICH THE CALCULATION IS MADE. THE NEW TAX RATE SHALL BE THE 8,293
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,294
ONE PLUS THE PRODUCT OF (i) A FRACTION, THE NUMERATOR OF WHICH IS 8,295
THE SIX MONTH REVENUE DIFFERENTIAL MULTIPLIED BY TWO AND THE 8,296
DENOMINATOR OF WHICH IS THE AMOUNT PAID DURING THE PERIOD BY ALL 8,297
SELF-ASSESSING PURCHASERS ON THE PERCENTAGE OF TOTAL PRICE BASIS 8,298
AND (ii) A FRACTION, THE NUMERATOR OF WHICH IS ELEVEN BILLION 8,299
TWENTY-FIVE MILLION AND THE DENOMINATOR OF WHICH IS TOTAL 8,300
KILOWATT HOURS CONSUMED DURING THE PERIOD BY SELF-ASSESSING
PURCHASERS. 8,301
(c) ON OR BEFORE JUNE 10, 2002, THE TAX COMMISSIONER SHALL 8,303
CALCULATE THE SIX MONTH REVENUE DIFFERENTIAL FOR SELF-ASSESSING 8,304
PURCHASERS. IF THE SIX MONTH REVENUE DIFFERENTIAL IS GREATER 8,305
THAN FIVE HUNDRED THOUSAND DOLLARS, THE TAX COMMISSIONER SHALL
INCREASE THE PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR 8,306
THE TWELVE MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN 8,307
WHICH THE CALCULATION IS MADE. THE NEW TAX RATE SHALL BE THE 8,308
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,309
ONE PLUS THE PRODUCT OF (i) A FRACTION, THE NUMERATOR OF WHICH IS 8,310
THE SIX MONTH REVENUE DIFFERENTIAL AND THE DENOMINATOR OF WHICH 8,311
IS THE AMOUNT PAID DURING THE PERIOD BY ALL SELF-ASSESSING 8,312
PURCHASERS ON THE PERCENTAGE OF TOTAL PRICE BASIS AND (ii) A 8,313
FRACTION, THE NUMERATOR OF WHICH IS TOTAL KILOWATT HOURS CONSUMED 8,314
DURING THE PERIOD BY SELF-ASSESSING PURCHASERS AND THE 8,315
DENOMINATOR OF WHICH IS ELEVEN BILLION TWENTY-FIVE MILLION. 8,316
196
IF THE SIX MONTH REVENUE DEFERENTIAL IS LESS THAN NEGATIVE 8,318
FIVE HUNDRED THOUSAND DOLLARS, THE TAX COMMISSIONER SHALL 8,319
DECREASE THE PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR 8,320
THE TWELVE MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN 8,321
WHICH THE CALCULATION IS MADE. THE NEW TAX RATE SHALL BE THE 8,322
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,323
ONE PLUS THE PRODUCT OF (i) A FRACTION, THE NUMERATOR OF WHICH IS 8,324
THE SIX MONTH REVENUE DIFFERENTIAL AND THE DENOMINATOR OF WHICH 8,325
IS THE AMOUNT PAID DURING THE PERIOD BY ALL SELF-ASSESSING 8,326
PURCHASERS ON THE PERCENTAGE OF TOTAL PRICE BASIS AND (ii) A 8,327
FRACTION, THE NUMERATOR OF WHICH IS ELEVEN BILLION TWENTY-FIVE 8,328
MILLION AND THE DENOMINATOR OF WHICH IS TOTAL KILOWATT HOURS 8,329
CONSUMED DURING THE PERIOD BY SELF-ASSESSING PURCHASERS.
(d) ON OR BEFORE JUNE 10, 2003, 2004, 2005, 2006, AND 8,331
2007, THE TAX COMMISSIONER SHALL CALCULATE THE TWELVE MONTH 8,332
REVENUE DIFFERENTIAL FOR SELF-ASSESSING PURCHASERS. IF THE 8,333
TWELVE MONTH REVENUE DIFFERENTIAL IS GREATER THAN ONE MILLION 8,334
DOLLARS, THE TAX COMMISSIONER SHALL INCREASE THE PERCENTAGE OF 8,335
TOTAL PRICE TAX RATE TO BE CHARGED FOR THE TWELVE MONTH PERIOD 8,336
BEGINNING IN THE MONTH FOLLOWING THAT IN WHICH THE CALCULATION IS 8,337
MADE, EXCEPT THAT THE RATE CALCULATED IN 2007 SHALL BECOME THE 8,338
PERMANENT TAX RATE. IN EACH YEAR, THE NEW TAX RATE SHALL BE THE 8,339
RATE IN EFFECT DURING THE CURRENT PERIOD MULTIPLIED BY THE SUM OF 8,340
ONE PLUS A FRACTION, THE NUMERATOR OF WHICH IS THE TWELVE MONTH 8,341
REVENUE DIFFERENTIAL AND THE DENOMINATOR OF WHICH IS THE AMOUNT 8,342
PAID DURING THE PERIOD BY ALL SELF-ASSESSING PURCHASERS ON THE 8,343
PERCENTAGE OF TOTAL PRICE BASIS. 8,344
IF THE REVENUE DIFFERENTIAL IS LESS THAN NEGATIVE ONE 8,346
MILLION DOLLARS, THE TAX COMMISSIONER SHALL DECREASE THE 8,347
PERCENTAGE OF TOTAL PRICE TAX RATE TO BE CHARGED FOR THE TWELVE 8,348
MONTH PERIOD BEGINNING IN THE MONTH FOLLOWING THAT IN WHICH THE 8,349
CALCULATION IS MADE, EXCEPT THAT THE RATE CALCULATED IN 2007 8,350
SHALL BECOME THE PERMANENT TAX RATE. IN EACH YEAR, THE NEW TAX 8,351
RATE SHALL BE THE RATE IN EFFECT DURING THE CURRENT PERIOD 8,352
197
MULTIPLIED BY THE SUM OF ONE PLUS A FRACTION, THE NUMERATOR OF 8,353
WHICH IS THE TWELVE MONTH REVENUE DIFFERENTIAL AND THE 8,354
DENOMINATOR OF WHICH IS THE AMOUNT PAID DURING THE PERIOD BY ALL 8,355
SELF-ASSESSING PURCHASERS ON THE PERCENTAGE OF PRICE BASIS. 8,356
(2) APPLICATION FOR REGISTRATION AS A SELF-ASSESSING 8,358
PURCHASER SHALL BE MADE ON A FORM PRESCRIBED BY THE TAX 8,359
COMMISSIONER. AT THE TIME OF MAKING THE APPLICATION AND BY THE 8,361
FIRST DAY OF MAY OF EACH YEAR, EXCLUDING MAY 1, 2000, A 8,362
SELF-ASSESSING PURCHASER SHALL PAY A FEE OF FIVE HUNDRED DOLLARS 8,363
TO THE TREASURER OF STATE FOR DEPOSIT TO THE KILOWATT HOUR EXCISE 8,364
TAX ADMINISTRATION FUND, WHICH IS HEREBY CREATED IN THE STATE 8,365
TREASURY. MONEY IN THE FUND SHALL BE USED TO DEFRAY THE TAX 8,366
COMMISSIONER'S COST IN ADMINISTERING THE TAX OWED UNDER SECTION 8,367
5727.81 OF THE REVISED CODE BY SELF-ASSESSING PURCHASERS. AFTER 8,368
THE APPLICATION IS APPROVED BY THE TAX COMMISSIONER, THE 8,369
REGISTRATION SHALL REMAIN IN EFFECT UNTIL CANCELED BY THE 8,370
REGISTRANT UPON WRITTEN NOTIFICATION TO THE COMMISSIONER OF THE 8,371
ELECTION TO PAY THE TAX IN ACCORDANCE WITH DIVISION (A) OF THIS 8,372
SECTION, OR BY THE TAX COMMISSIONER FOR NOT PAYING THE TAX OR FEE 8,373
UNDER DIVISION (C) OF THIS SECTION, OR MEETING THE QUALIFICATIONS 8,374
IN DIVISION (C)(1) OF THIS SECTION. THE TAX COMMISSIONER SHALL 8,375
GIVE WRITTEN NOTICE TO THE ELECTRIC DISTRIBUTION COMPANY FROM 8,377
WHICH ELECTRICITY IS DELIVERED TO A SELF-ASSESSING PURCHASER OF 8,378
THE PURCHASER'S SELF-ASSESSING STATUS, AND THE ELECTRIC 8,379
DISTRIBUTION COMPANY IS RELIEVED OF THE OBLIGATION TO PAY THE TAX 8,381
IMPOSED BY DIVISION (A) OF THIS SECTION FOR ELECTRICITY 8,382
DISTRIBUTED TO THAT SELF-ASSESSING PURCHASER UNTIL IT IS NOTIFIED 8,383
BY THE TAX COMMISSIONER THAT THE SELF-ASSESSING PURCHASER'S 8,384
REGISTRATION IS CANCELED. WITHIN FIFTEEN DAYS OF NOTIFICATION OF 8,385
THE CANCELED REGISTRATION, THE ELECTRIC DISTRIBUTION COMPANY 8,386
SHALL BE RESPONSIBLE FOR PAYMENT OF THE TAX IMPOSED BY DIVISION 8,387
(A) OF THIS SECTION ON ELECTRICITY DISTRIBUTED TO A PURCHASER 8,388
THAT IS NO LONGER REGISTERED AS A SELF-ASSESSING PURCHASER. A 8,390
SELF-ASSESSING PURCHASER WITH A CANCELED REGISTRATION MUST FILE A 8,391
198
REPORT AND REMIT THE TAX IMPOSED BY DIVISION (A) OF THIS SECTION 8,392
ON ALL ELECTRICITY IT RECEIVES FOR ANY MEASUREMENT PERIOD PRIOR 8,393
TO THE TAX BEING REPORTED AND PAID BY THE ELECTRIC DISTRIBUTION 8,395
COMPANY. A SELF-ASSESSING PURCHASER WHOSE REGISTRATION IS 8,396
CANCELED BY THE TAX COMMISSIONER IS NOT ELIGIBLE TO REGISTER AS A 8,397
SELF-ASSESSING PURCHASER FOR TWO YEARS AFTER THE REGISTRATION IS
CANCELED. 8,398
(D) THE TAX IMPOSED BY THIS SECTION DOES NOT APPLY TO THE 8,401
DISTRIBUTION OF ANY KILOWATT HOURS OF ELECTRICITY TO THE FEDERAL 8,402
GOVERNMENT, TO AN END USER LOCATED AT A FEDERAL FACILITY THAT 8,403
USES ELECTRICITY FOR THE ENRICHMENT OF URANIUM, OR TO AN END USER 8,404
FOR ANY DAY THE END USER IS A QUALIFIED END USER. THE EXEMPTION 8,405
UNDER THIS DIVISION FOR A QUALIFIED END USER ONLY APPLIES TO THE 8,406
MANUFACTURING LOCATION WHERE THE QUALIFIED END USER USES MORE 8,407
THAN THREE MILLION KILOWATT HOURS PER DAY.
Sec. 5727.82. (A)(1) EXCEPT AS PROVIDED IN DIVISIONS 8,410
(A)(2) AND (D) OF THIS SECTION, BY THE TWENTIETH DAY OF EACH 8,411
MONTH, EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY THE TAX 8,412
IMPOSED BY SECTION 5727.81 OF THE REVISED CODE SHALL FILE WITH 8,414
THE TREASURER OF STATE A RETURN AS PRESCRIBED BY THE TAX 8,415
COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF TAX DUE 8,417
FOR THE PRECEDING MONTH. THE FIRST PAYMENT OF THIS TAX SHALL BE
MADE ON OR BEFORE JUNE 20, 2001. 8,418
(2) IF THE ELECTRIC DISTRIBUTION COMPANY REQUIRED TO PAY 8,420
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE IS A 8,423
MUNICIPAL ELECTRIC UTILITY, IT MAY RETAIN IN ITS GENERAL FUND 8,424
THAT PORTION OF THE TAX ON THE KILOWATT HOURS DISTRIBUTED TO END 8,425
USERS LOCATED WITHIN THE BOUNDARIES OF THE MUNICIPAL CORPORATION. 8,426
HOWEVER, THE MUNICIPAL ELECTRIC UTILITY SHALL MAKE PAYMENT IN 8,427
ACCORDANCE WITH DIVISION (A)(1) OF THIS SECTION OF THE TAX DUE ON 8,429
THE KILOWATT HOURS DISTRIBUTED TO END USERS LOCATED OUTSIDE THE 8,430
BOUNDARIES OF THE MUNICIPAL CORPORATION. 8,431
(3) BY THE TWENTIETH DAY OF EACH MONTH, EACH 8,434
SELF-ASSESSING PURCHASER THAT UNDER DIVISION (C) OF SECTION 8,435
199
5727.81 OF THE REVISED CODE PAYS DIRECTLY TO THE TREASURER OF 8,437
STATE THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 8,438
SHALL FILE WITH THE TREASURER OF STATE A RETURN AS PRESCRIBED BY 8,439
THE TAX COMMISSIONER AND SHALL MAKE PAYMENT OF THE FULL AMOUNT OF 8,440
THE TAX DUE FOR THE PRECEDING MONTH. 8,441
(4) AS PRESCRIBED BY THE TAX COMMISSIONER, THE RETURN 8,443
SHALL BE SIGNED BY THE COMPANY OR SELF-ASSESSING PURCHASER 8,444
REQUIRED TO FILE IT, OR AN AUTHORIZED EMPLOYEE, OFFICER, OR AGENT 8,445
OF THE COMPANY OR PURCHASER. THE TREASURER OF STATE SHALL MARK 8,446
ON THE RETURN THE DATE IT WAS RECEIVED AND INDICATE PAYMENT OR 8,447
NONPAYMENT OF THE TAX SHOWN TO BE DUE ON THE RETURN. THE 8,448
TREASURER OF STATE IMMEDIATELY SHALL TRANSMIT ALL RETURNS TO THE 8,449
TAX COMMISSIONER. THE RETURN SHALL BE DEEMED FILED WHEN RECEIVED 8,450
BY THE TREASURER OF STATE.
(B) ANY ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,452
PURCHASER REQUIRED BY THIS SECTION TO FILE A RETURN WHO FAILS TO 8,454
FILE IT AND PAY THE TAX WITHIN THE PERIOD PRESCRIBED SHALL PAY AN
ADDITIONAL CHARGE OF FIFTY DOLLARS OR TEN PER CENT OF THE TAX 8,455
REQUIRED TO BE PAID FOR THE REPORTING PERIOD, WHICHEVER IS 8,456
GREATER. THE TAX COMMISSIONER MAY COLLECT THE ADDITIONAL CHARGE 8,457
BY ASSESSMENT PURSUANT TO SECTION 5727.89 OF THE REVISED CODE. 8,460
THE COMMISSIONER MAY ABATE ALL OR A PORTION OF THE ADDITIONAL 8,461
CHARGE AND MAY ADOPT RULES GOVERNING SUCH ABATEMENTS. 8,462
(C) IF ANY TAX DUE IS NOT PAID TIMELY IN ACCORDANCE WITH 8,465
THIS SECTION, THE ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,466
PURCHASER LIABLE FOR THE TAX SHALL PAY INTEREST, CALCULATED AT 8,467
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 8,469
CODE, FROM THE DATE THE TAX PAYMENT WAS DUE TO THE DATE OF 8,470
PAYMENT OR TO THE DATE AN ASSESSMENT IS ISSUED, WHICHEVER OCCURS 8,471
FIRST. INTEREST SHALL BE PAID IN THE SAME MANNER AS THE TAX, AND 8,472
THE COMMISSIONER MAY COLLECT THE INTEREST BY ASSESSMENT PURSUANT 8,473
TO SECTION 5727.89 OF THE REVISED CODE. 8,474
(D) NOT LATER THAN THE TENTH DAY OF EACH MONTH, A 8,476
QUALIFIED END USER SHALL REPORT IN WRITING TO THE ELECTRIC 8,477
200
DISTRIBUTION COMPANY THAT DISTRIBUTES ELECTRICITY TO THE END USER 8,478
THE KILOWATT HOURS THAT WERE CONSUMED AS A QUALIFIED END USER FOR 8,479
THE PRIOR MONTH AND THE NUMBER OF DAYS, IF ANY, ON WHICH THE END 8,480
USER WAS NOT A QUALIFIED END USER. FOR EACH CALENDAR DAY THE END 8,481
USER WAS NOT A QUALIFIED END USER, THE END USER SHALL REPORT IN 8,482
WRITING TO THE ELECTRIC DISTRIBUTION COMPANY THE NUMBER OF 8,483
KILOWATT HOURS USED ON THAT DAY, AND THE ELECTRIC DISTRIBUTION 8,484
COMPANY SHALL PAY THE TAX IMPOSED UNDER SECTION 5727.81 OF THE 8,485
REVISED CODE ON EACH KILOWATT HOUR THAT WAS NOT DISTRIBUTED TO A 8,486
QUALIFIED END USER. THE ELECTRIC DISTRIBUTION COMPANY MAY RELY 8,487
IN GOOD FAITH ON A QUALIFIED END USER'S REPORT FILED UNDER THIS 8,488
DIVISION. IF IT IS DETERMINED THAT THE END USER WAS NOT A 8,489
QUALIFIED END USER FOR ANY CALENDAR DAY OR THE QUANTITY OF 8,490
ELECTRICITY USED BY THE QUALIFIED END USER WAS OVERSTATED, THE 8,491
TAX COMMISSIONER SHALL ASSESS AND COLLECT ANY TAX IMPOSED UNDER 8,492
SECTION 5727.81 OF THE REVISED CODE DIRECTLY FROM THE QUALIFIED 8,494
END USER. AS REQUESTED BY THE COMMISSIONER, EACH END USER
REPORTING TO AN ELECTRIC DISTRIBUTION COMPANY THAT IT IS A 8,495
QUALIFIED END USER SHALL PROVIDE DOCUMENTATION TO THE 8,496
COMMISSIONER THAT ESTABLISHES THE VOLUME OF ELECTRICITY CONSUMED 8,498
DAILY BY THE QUALIFIED END USER. 8,499
Sec. 5727.83. (A) AN ELECTRIC DISTRIBUTION COMPANY OR 8,501
SELF-ASSESSING PURCHASER SHALL REMIT EACH MONTHLY TAX PAYMENT BY 8,503
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY DIVISIONS (B) AND (C) 8,505
OF THIS SECTION.
THE TAX COMMISSIONER SHALL NOTIFY EACH ELECTRIC 8,507
DISTRIBUTION COMPANY AND SELF-ASSESSING PURCHASER OF THE 8,508
OBLIGATION TO REMIT TAXES BY ELECTRONIC FUNDS TRANSFER, SHALL 8,510
MAINTAIN AN UPDATED LIST OF THOSE COMPANIES AND PURCHASERS, AND
SHALL TIMELY CERTIFY TO THE TREASURER OF STATE THE LIST AND ANY 8,512
ADDITIONS THERETO OR DELETIONS THEREFROM. FAILURE BY THE TAX 8,513
COMMISSIONER TO NOTIFY A COMPANY OR SELF-ASSESSING PURCHASER 8,514
SUBJECT TO THIS SECTION TO REMIT TAXES BY ELECTRONIC FUNDS 8,515
TRANSFER DOES NOT RELIEVE THE COMPANY OR SELF-ASSESSING PURCHASER 8,516
201
OF ITS OBLIGATION TO REMIT TAXES IN THAT MANNER. 8,517
(B) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,519
PURCHASER REQUIRED BY THIS SECTION TO REMIT PAYMENTS BY 8,522
ELECTRONIC FUNDS TRANSFER SHALL REMIT SUCH PAYMENTS TO THE 8,523
TREASURER OF STATE IN THE MANNER PRESCRIBED BY RULES ADOPTED BY 8,524
THE TREASURER OF STATE UNDER SECTION 113.061 OF THE REVISED CODE,
AND ON OR BEFORE THE DATES SPECIFIED UNDER SECTION 5727.82 OF THE 8,525
REVISED CODE. THE PAYMENT OF TAXES BY ELECTRONIC FUNDS TRANSFER 8,527
DOES NOT AFFECT A COMPANY'S OR SELF-ASSESSING PURCHASER'S
OBLIGATION TO FILE THE MONTHLY RETURN AS REQUIRED UNDER SECTION 8,529
5727.82 OF THE REVISED CODE.
(C) AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,531
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 8,532
FUNDS TRANSFER MAY APPLY TO THE TREASURER OF STATE IN THE MANNER 8,534
PRESCRIBED BY THE TREASURER OF STATE TO BE EXCUSED FROM THAT
REQUIREMENT. THE TREASURER OF STATE MAY EXCUSE THE COMPANY OR 8,535
SELF-ASSESSING PURCHASER FROM REMITTANCE BY ELECTRONIC FUNDS 8,537
TRANSFER FOR GOOD CAUSE SHOWN FOR THE PERIOD OF TIME REQUESTED BY 8,538
THE COMPANY OR SELF-ASSESSING PURCHASER OR FOR A PORTION OF THAT 8,539
PERIOD. THE TREASURER OF STATE SHALL NOTIFY THE TAX COMMISSIONER 8,540
AND THE COMPANY OR SELF-ASSESSING PURCHASER OF THE TREASURER OF 8,541
STATE'S DECISION AS SOON AS IS PRACTICABLE. 8,542
(D) IF AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,544
PURCHASER REQUIRED BY THIS SECTION TO REMIT TAXES BY ELECTRONIC 8,547
FUNDS TRANSFER REMITS THOSE TAXES BY SOME MEANS OTHER THAN BY 8,548
ELECTRONIC FUNDS TRANSFER AS PRESCRIBED BY THIS SECTION AND THE 8,549
RULES ADOPTED BY THE TREASURER OF STATE, AND THE TREASURER OF 8,550
STATE DETERMINES THAT SUCH FAILURE WAS NOT DUE TO REASONABLE
CAUSE OR WAS DUE TO WILLFUL NEGLECT, THE TREASURER OF STATE SHALL 8,551
NOTIFY THE TAX COMMISSIONER OF THE FAILURE TO REMIT BY ELECTRONIC 8,552
FUNDS TRANSFER AND SHALL PROVIDE THE COMMISSIONER WITH ANY 8,553
INFORMATION USED IN MAKING THAT DETERMINATION. THE TAX 8,554
COMMISSIONER MAY COLLECT AN ADDITIONAL CHARGE BY ASSESSMENT IN 8,555
THE MANNER PRESCRIBED BY SECTION 5727.89 OF THE REVISED CODE. 8,556
202
THE ADDITIONAL CHARGE SHALL EQUAL FIVE PER CENT OF THE AMOUNT OF 8,557
THE TAXES REQUIRED TO BE PAID BY ELECTRONIC FUNDS TRANSFER, BUT 8,558
SHALL NOT EXCEED FIVE THOUSAND DOLLARS. ANY ADDITIONAL CHARGE 8,559
ASSESSED UNDER THIS SECTION IS IN ADDITION TO ANY OTHER PENALTY 8,560
OR CHARGE IMPOSED UNDER THIS CHAPTER, AND SHALL BE CONSIDERED AS 8,561
REVENUE ARISING FROM THE TAX IMPOSED UNDER THIS CHAPTER. THE TAX 8,562
COMMISSIONER MAY ABATE ALL OR A PORTION OF SUCH A CHARGE AND MAY 8,563
ADOPT RULES GOVERNING SUCH ABATEMENTS. 8,564
NO ADDITIONAL CHARGE SHALL BE ASSESSED UNDER THIS DIVISION 8,566
AGAINST AN ELECTRIC DISTRIBUTION COMPANY OR SELF-ASSESSING 8,567
PURCHASER THAT HAS BEEN NOTIFIED OF ITS OBLIGATION TO REMIT TAXES 8,570
UNDER THIS SECTION AND THAT REMITS ITS FIRST TWO TAX PAYMENTS 8,571
AFTER SUCH NOTIFICATION BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 8,572
TRANSFER. THE ADDITIONAL CHARGE MAY BE ASSESSED UPON THE 8,573
REMITTANCE OF ANY SUBSEQUENT TAX PAYMENT THAT THE COMPANY OR
PURCHASER REMITS BY SOME MEANS OTHER THAN ELECTRONIC FUNDS 8,575
TRANSFER.
Sec. 5727.84. (A) AS USED IN THIS SECTION AND SECTIONS 8,577
5727.85, 5727.86, AND 5727.87 OF THE REVISED CODE: 8,579
(1) "SCHOOL DISTRICT" MEANS A CITY, LOCAL, OR EXEMPTED 8,581
VILLAGE SCHOOL DISTRICT. 8,582
(2) "JOINT VOCATIONAL SCHOOL DISTRICT" MEANS A JOINT 8,584
VOCATIONAL SCHOOL DISTRICT CREATED UNDER SECTION 3311.16 OF THE 8,585
REVISED CODE, AND INCLUDES A COOPERATIVE EDUCATION SCHOOL 8,587
DISTRICT CREATED UNDER SECTION 3311.52 OR 3311.521 OF THE REVISED 8,588
CODE AND A COUNTY SCHOOL FINANCING DISTRICT CREATED UNDER SECTION 8,589
3311.50 OF THE REVISED CODE. 8,590
(3) "LOCAL TAXING UNIT" MEANS A SUBDIVISION OR TAXING 8,592
UNIT, AS DEFINED IN SECTION 5705.01 OF THE REVISED CODE, A PARK 8,593
DISTRICT CREATED UNDER CHAPTER 1545. OF THE REVISED CODE, OR A 8,595
TOWNSHIP PARK DISTRICT ESTABLISHED UNDER SECTION 511.23 OF THE
REVISED CODE, BUT EXCLUDES SCHOOL DISTRICTS AND JOINT VOCATIONAL 8,597
SCHOOL DISTRICTS.
(4) "STATE EDUCATION AID" MEANS THE SUM OF THE STATE BASIC 8,599
203
AID AND STATE SPECIAL EDUCATION AID AMOUNTS COMPUTED FOR A SCHOOL 8,600
DISTRICT UNDER DIVISIONS (A) AND (B) OF SECTION 3317.022 OF THE 8,602
REVISED CODE. 8,603
(5) "STATE EDUCATION AID OFFSET" MEANS THE AMOUNT 8,605
CERTIFIED FOR EACH SCHOOL DISTRICT UNDER DIVISION (A)(1) OF 8,606
SECTION 5727.85 OF THE REVISED CODE. 8,607
(6) "ADJUSTED TOTAL TAXABLE VALUE" HAS THE SAME MEANING AS 8,609
IN SECTION 3317.02 OF THE REVISED CODE. 8,610
(7) "TAX VALUE LOSS" MEANS THE AMOUNT DETERMINED UNDER 8,612
DIVISION (C) OF THIS SECTION. 8,613
(8) "FIXED-RATE LEVY" MEANS ANY TAX LEVIED ON PROPERTY 8,615
OTHER THAN A FIXED-SUM LEVY. 8,616
(9) "FIXED-RATE LEVY LOSS" MEANS THE AMOUNT DETERMINED 8,618
UNDER DIVISION (D) OF THIS SECTION. 8,619
(10) "FIXED-SUM LEVY" MEANS A TAX LEVIED ON PROPERTY AT 8,621
WHATEVER RATE IS REQUIRED TO PRODUCE A SPECIFIED AMOUNT OF TAX 8,622
MONEY OR TO PAY DEBT CHARGES, AND INCLUDES SCHOOL DISTRICT 8,623
EMERGENCY LEVIES IMPOSED PURSUANT TO SECTION 5705.194 OF THE 8,624
REVISED CODE.
(11) "FIXED-SUM LEVY LOSS" MEANS THE AMOUNT DETERMINED 8,626
UNDER DIVISION (E) OF THIS SECTION. 8,627
(12) "CONSUMER PRICE INDEX" MEANS THE CONSUMER PRICE INDEX 8,629
(ALL ITEMS, ALL URBAN CONSUMERS) PREPARED BY THE BUREAU OF LABOR 8,630
STATISTICS OF THE UNITED STATES DEPARTMENT OF LABOR. 8,631
(B) ALL MONEY ARISING FROM THE TAX IMPOSED BY SECTION 8,633
5727.81 OF THE REVISED CODE SHALL BE CREDITED AS FOLLOWS: 8,634
(1) FIFTY-NINE AND NINE HUNDRED SEVENTY-SIX 8,636
ONE-THOUSANDTHS PER CENT, PLUS AN AMOUNT EQUAL TO THE STATE 8,637
EDUCATION AID OFFSET, SHALL BE CREDITED TO THE GENERAL REVENUE 8,638
FUND.
(2) TWO AND SIX HUNDRED FORTY-SIX ONE-THOUSANDTHS PER CENT 8,640
SHALL BE CREDITED TO THE LOCAL GOVERNMENT FUND, FOR DISTRIBUTION 8,641
IN ACCORDANCE WITH SECTION 5747.50 OF THE REVISED CODE. 8,642
(3) THREE HUNDRED SEVENTY-EIGHT ONE-THOUSANDTHS PER CENT 8,644
204
SHALL BE CREDITED TO THE LOCAL GOVERNMENT REVENUE ASSISTANCE 8,645
FUND, FOR DISTRIBUTION IN ACCORDANCE WITH SECTION 5747.61 OF THE 8,646
REVISED CODE. 8,647
(4) TWENTY-FIVE AND NINE-TENTHS PER CENT, LESS AN AMOUNT 8,649
EQUAL TO THE STATE EDUCATION AID OFFSET, SHALL BE CREDITED TO THE 8,650
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 8,651
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 8,652
PAYMENTS DESCRIBED IN SECTION 5727.85 OF THE REVISED CODE. 8,653
(5) ELEVEN AND ONE-TENTH PER CENT SHALL BE CREDITED TO THE 8,655
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND, WHICH IS HEREBY 8,656
CREATED IN THE STATE TREASURY FOR THE PURPOSE OF MAKING THE 8,657
PAYMENTS DESCRIBED IN SECTION 5727.86 OF THE REVISED CODE. 8,658
(6) BEGINNING IN THE FISCAL YEAR IN WHICH PAYMENTS ARE 8,660
REQUIRED TO BE MADE UNDER SECTIONS 5727.85 AND 5727.86 OF THE 8,661
REVISED CODE, IF THE REVENUE ARISING FROM THE TAX LEVIED BY 8,662
SECTION 5727.81 OF THE REVISED CODE IS LESS THAN FIVE HUNDRED 8,664
FIFTY-TWO MILLION DOLLARS, THE AMOUNT CREDITED TO THE GENERAL 8,665
REVENUE FUND UNDER DIVISION (B)(1) OF THIS SECTION SHALL BE 8,666
REDUCED BY THE AMOUNT NECESSARY TO CREDIT TO EACH OF THE FUNDS IN 8,667
DIVISIONS (B)(2),(3),(4), AND (5) OF THIS SECTION THE AMOUNT IT 8,668
WOULD HAVE RECEIVED IF THE TAX DID RAISE FIVE HUNDRED FIFTY-TWO 8,669
MILLION DOLLARS FOR THAT FISCAL YEAR. THE TAX COMMISSIONER SHALL 8,670
CERTIFY TO THE DIRECTOR OF BUDGET AND MANAGEMENT THE AMOUNTS THAT 8,671
SHALL BE CREDITED UNDER THIS DIVISION.
(C) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 8,673
SHALL DETERMINE FOR EACH TAXING DISTRICT ITS TAX VALUE LOSS, 8,675
WHICH IS THE SUM OF THE AMOUNTS DESCRIBED IN DIVISIONS (C)(1) AND 8,676
(2) OF THIS SECTION: 8,677
(1) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 8,679
DESCRIBED IN DIVISION (C)(1)(b) FROM THE AMOUNT DESCRIBED IN 8,680
DIVISION (C)(1)(a) OF THIS SECTION. 8,682
(a) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 8,684
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 8,685
COMMISSIONER FOR TAX YEAR 1998 ON A PRELIMINARY ASSESSMENT, OR AN 8,686
205
AMENDED PRELIMINARY ASSESSMENT IF ISSUED PRIOR TO MARCH 1, 1999, 8,687
AND AS APPORTIONED TO THE TAXING DISTRICT FOR TAX YEAR 1998; 8,688
(b) THE VALUE OF ELECTRIC COMPANY AND RURAL ELECTRIC 8,690
COMPANY TANGIBLE PERSONAL PROPERTY AS ASSESSED BY THE TAX 8,691
COMMISSIONER FOR TAX YEAR 1998 HAD THE PROPERTY BEEN APPORTIONED 8,692
TO THE TAXING DISTRICT FOR TAX YEAR 2001, AND ASSESSED AT THE 8,693
RATES IN EFFECT FOR TAX YEAR 2001. 8,694
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 8,696
DESCRIBED IN DIVISION (C)(2)(b) FROM THE AMOUNT DESCRIBED IN 8,697
DIVISION (C)(2)(a) OF THIS SECTION. 8,698
(a) THE THREE-YEAR AVERAGE FOR TAX YEARS 1996, 1997, AND 8,700
1998 OF THE ASSESSED VALUE FROM NUCLEAR FUEL MATERIALS AND 8,701
ASSEMBLIES ASSESSED AGAINST A PERSON UNDER CHAPTER 5711. OF THE 8,702
REVISED CODE FROM THE LEASING OF THEM TO AN ELECTRIC COMPANY FOR 8,703
THOSE RESPECTIVE TAX YEARS, AS REFLECTED IN THE PRELIMINARY 8,704
ASSESSMENTS;
(b) THE THREE-YEAR AVERAGE ASSESSED VALUE FROM NUCLEAR 8,706
FUEL MATERIALS AND ASSEMBLIES ASSESSED UNDER DIVISION (C)(2)(a) 8,707
OF THIS SECTION FOR TAX YEARS 1996, 1997, AND 1998, AS REFLECTED 8,708
IN THE PRELIMINARY ASSESSMENTS, USING AN ASSESSMENT RATE OF
TWENTY-FIVE PER CENT. 8,709
THE TAX COMMISSIONER MAY REQUEST THAT ELECTRIC COMPANIES 8,711
AND RURAL ELECTRIC COMPANIES FILE A REPORT TO HELP DETERMINE THE 8,712
TAX VALUE LOSS UNDER DIVISION (C) OF THIS SECTION. THE REPORT 8,713
SHALL BE FILED WITHIN THIRTY DAYS OF THE COMMISSIONER'S REQUEST. 8,714
A COMPANY THAT FAILS TO FILE THE REPORT OR DOES NOT TIMELY FILE
THE REPORT IS SUBJECT TO THE PENALTY IN SECTION 5727.60 OF THE 8,715
REVISED CODE. 8,716
(D) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 8,718
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 8,719
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-RATE LEVY LOSS, WHICH 8,720
IS ITS TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN EFFECT IN TAX 8,722
YEAR 1998 FOR FIXED-RATE LEVIES.
(E) NOT LATER THAN JANUARY 1, 2002, THE TAX COMMISSIONER 8,724
206
SHALL DETERMINE FOR EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 8,726
DISTRICT, AND LOCAL TAXING UNIT ITS FIXED-SUM LEVY LOSS, WHICH IS 8,727
THE AMOUNT OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 8,728
DIVISION (E)(2) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 8,729
DIVISION (E)(1) OF THIS SECTION: 8,730
(1) THE TAX VALUE LOSS MULTIPLIED BY THE TAX RATE IN 8,732
EFFECT IN TAX YEAR 1998 FOR FIXED-SUM LEVIES FOR ALL TAXING 8,733
DISTRICTS WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL 8,734
DISTRICT, AND LOCAL TAXING UNIT. FOR THE YEARS 2002 THROUGH 8,735
2006, THIS COMPUTATION SHALL INCLUDE SCHOOL DISTRICT EMERGENCY 8,736
LEVIES THAT EXISTED IN 1998, AND ALL OTHER FIXED-SUM LEVIES THAT 8,737
EXISTED IN 1998 AND CONTINUE TO BE CHARGED IN THE TAX YEAR 8,738
PRECEDING THE DISTRIBUTION YEAR. FOR THE YEARS 2007 THROUGH 8,739
2016, THIS COMPUTATION SHALL EXCLUDE ALL SCHOOL DISTRICT 8,740
EMERGENCY LEVIES AND ALL OTHER FIXED-SUM LEVIES THAT EXISTED IN 8,741
1998 BUT ARE NO LONGER IN EFFECT IN THE TAX YEAR PRECEDING THE 8,742
DISTRIBUTION YEAR.
(2) THE TOTAL TAXABLE VALUE IN TAX YEAR 1998 IN EACH 8,744
SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, AND LOCAL 8,745
TAXING UNIT MULTIPLIED BY ONE-FOURTH OF ONE MILL. 8,746
IF THE COMPUTATION UNDER DIVISION (E) OF THIS SECTION FOR 8,748
ANY SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR LOCAL 8,749
TAXING UNIT IS GREATER THAN ZERO, THE ONE-FOURTH OF ONE MILL THAT
IS SUBTRACTED PURSUANT TO DIVISION (E) OF SECTION 5727.85 OF THE 8,750
REVISED CODE OR DIVISION (A)(2) OF SECTION 5727.86 OF THE REVISED 8,752
CODE SHALL BE APPORTIONED AMONG ALL CONTRIBUTING FIXED-SUM LEVIES 8,754
IN THE PROPORTION OF EACH LEVY TO THE SUM OF ALL FIXED-SUM LEVIES 8,755
WITHIN EACH SCHOOL DISTRICT, JOINT VOCATIONAL SCHOOL DISTRICT, OR 8,756
LOCAL TAXING UNIT.
(F) NOTWITHSTANDING DIVISIONS (C), (D), AND (E) OF THIS 8,759
SECTION, IN COMPUTING THE TAX VALUE LOSS, FIXED-RATE LEVY LOSS, 8,760
AND FIXED-SUM LEVY LOSS, THE TAX COMMISSIONER SHALL USE THE
GREATER OF THE 1998 TAX RATE OR THE 1999 TAX RATE, BUT THE 1999 8,761
TAX RATE SHALL NOT INCLUDE FOR THIS PURPOSE ANY TAX LEVY APPROVED 8,762
207
BY THE VOTERS AFTER JUNE 30, 1999. 8,763
Sec. 5727.85. (A) BY THE THIRTY-FIRST DAY OF JULY OF EACH 8,765
YEAR, BEGINNING IN 2002 AND ENDING IN 2016, THE DEPARTMENT OF 8,766
EDUCATION SHALL DETERMINE THE FOLLOWING FOR EACH SCHOOL DISTRICT 8,767
ELIGIBLE FOR PAYMENT UNDER DIVISION (C) OF THIS SECTION: 8,768
(1) THE STATE EDUCATION AID OFFSET, WHICH IS THE 8,770
DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT DESCRIBED IN 8,771
DIVISION (A)(1)(b) OF THIS SECTION FROM THE AMOUNT DESCRIBED IN 8,773
DIVISION (A)(1)(a) OF THIS SECTION: 8,775
(a) THE STATE EDUCATION AID COMPUTED FOR THE SCHOOL 8,777
DISTRICT FOR THE CURRENT FISCAL YEAR ON THE BASIS OF THE ADJUSTED 8,778
TOTAL TAXABLE VALUE; 8,779
(b) THE STATE EDUCATION AID THAT WOULD BE COMPUTED FOR THE 8,781
SCHOOL DISTRICT FOR THE CURRENT FISCAL YEAR IF THE DISTRICT'S 8,782
ADJUSTED TOTAL TAXABLE VALUE INCLUDED THE TAX VALUE LOSS FOR ALL 8,783
TAXING DISTRICTS IN THE SCHOOL DISTRICT.
(2) THE DIFFERENCE OBTAINED BY SUBTRACTING THE STATE 8,785
EDUCATION AID OFFSET DETERMINED UNDER DIVISION (A)(1) OF THIS 8,786
SECTION FROM THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION 8,787
(D) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 8,788
DISTRICTS IN EACH SCHOOL DISTRICT. THE DEPARTMENT OF EDUCATION 8,789
SHALL CERTIFY THE AMOUNT SO DETERMINED TO THE DIRECTOR OF BUDGET 8,790
AND MANAGEMENT.
(B) NOT LATER THAN THE THIRTY-FIRST DAY OF OCTOBER OF THE 8,793
YEARS 2006 THROUGH 2016, THE DEPARTMENT OF EDUCATION SHALL 8,794
DETERMINE ALL OF THE FOLLOWING FOR EACH SCHOOL DISTRICT: 8,795
(1) THE AMOUNT OBTAINED BY SUBTRACTING THE DISTRICT'S 8,797
STATE EDUCATION AID COMPUTED FOR FISCAL YEAR 2002 FROM THE 8,798
DISTRICT'S STATE EDUCATION AID COMPUTED FOR THE CURRENT FISCAL 8,799
YEAR;
(2) THE INFLATION-ADJUSTED PROPERTY TAX LOSS. THE 8,801
INFLATION-ADJUSTED PROPERTY TAX LOSS EQUALS THE FIXED-RATE LEVY 8,802
LOSS DETERMINED UNDER DIVISION (D) OF SECTION 5727.84 OF THE 8,804
REVISED CODE FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT 8,805
208
PLUS THE PRODUCT OBTAINED BY MULTIPLYING THAT LOSS BY THE 8,806
CUMULATIVE PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FROM 8,807
JANUARY 1, 2002, TO THE THIRTIETH DAY OF JUNE OF THE CURRENT 8,808
YEAR.
(3) THE DIFFERENCE OBTAINED BY SUBTRACTING THE AMOUNT 8,810
COMPUTED UNDER DIVISION (B)(1) FROM THE AMOUNT OF THE 8,811
INFLATION-ADJUSTED PROPERTY TAX LOSS. IF THIS DIFFERENCE IS ZERO 8,812
OR A NEGATIVE NUMBER, NO FURTHER PAYMENTS SHALL BE MADE UNDER 8,813
DIVISION (C) OF THIS SECTION TO THE SCHOOL DISTRICT FROM THE 8,814
SCHOOL DISTRICT PROPERTY TAX REPLACEMENT FUND. IF THE DIFFERENCE 8,816
IS GREATER THAN ZERO, THE DEPARTMENT OF EDUCATION SHALL CERTIFY
THE AMOUNT CALCULATED IN DIVISION (A)(2) OF THIS SECTION TO THE 8,818
DIRECTOR OF BUDGET AND MANAGEMENT NOT LATER THAN THE THIRTY-FIRST 8,819
DAY OF DECEMBER OF EACH YEAR, BEGINNING IN 2006 AND ENDING IN 8,821
2016.
(C) FOR ALL TAXING DISTRICTS IN EACH SCHOOL DISTRICT, THE 8,823
DIRECTOR OF BUDGET AND MANAGEMENT SHALL PAY FROM THE SCHOOL 8,824
DISTRICT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED 8,825
INCOME TAX FUND IN THE PROPER COUNTY TREASURY ALL OF THE 8,826
FOLLOWING: 8,827
(1) IN FEBRUARY 2002, ONE-HALF OF THE FIXED-RATE LEVY LOSS 8,829
CERTIFIED UNDER DIVISION (D) OF SECTION 5727.84 OF THE REVISED 8,832
CODE ON OR BEFORE THE DAY PRESCRIBED FOR THE SETTLEMENT UNDER 8,833
DIVISION (A) OF SECTION 321.24 OF THE REVISED CODE. 8,834
(2) FROM AUGUST 2002 THROUGH AUGUST 2006, ONE-HALF OF THE 8,837
AMOUNT CERTIFIED FOR THAT FISCAL YEAR UNDER DIVISION (A)(2) OF 8,838
THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,839
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,840
REVISED CODE. 8,841
(3) FROM FEBRUARY 2007 THROUGH AUGUST 2016, ONE-HALF OF 8,843
THE AMOUNT CERTIFIED FOR THAT CALENDAR YEAR UNDER DIVISION (B)(3) 8,845
OF THIS SECTION ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 8,846
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 8,847
REVISED CODE. 8,848
209
THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 8,850
DIVISIONS (C)(1), (2), AND (3) OF THIS SECTION TO THE PROPER 8,851
SCHOOL DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS 8,852
TAXES, AND THE SCHOOL DISTRICT SHALL APPORTION THE AMOUNTS SO
RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS AS IF THOSE 8,853
AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 8,854
(D) NOT LATER THAN JANUARY 1, 2002, FOR ALL TAXING 8,856
DISTRICTS IN EACH JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 8,858
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 8,859
MANAGEMENT THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D) 8,861
OF SECTION 5727.84 OF THE REVISED CODE. FROM FEBRUARY 2002 TO 8,863
AUGUST 2016, THE DIRECTOR SHALL PAY FROM THE SCHOOL DISTRICT 8,864
PROPERTY TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX 8,865
FUND IN THE PROPER COUNTY TREASURY, ONE-HALF OF THE FIXED-RATE 8,866
LEVY LOSS SO CERTIFIED FOR EACH YEAR ON OR BEFORE EACH OF THE 8,867
DAYS PRESCRIBED FOR THE SETTLEMENTS UNDER DIVISIONS (A) AND (C) 8,868
OF SECTION 321.24 OF THE REVISED CODE. THE COUNTY TREASURER 8,870
SHALL DISTRIBUTE SUCH AMOUNTS TO THE PROPER JOINT VOCATIONAL
SCHOOL DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS
TAXES, AND THE JOINT VOCATIONAL SCHOOL DISTRICT SHALL APPORTION 8,871
THE AMOUNTS SO RECEIVED AMONG ITS FUNDS IN THE SAME PROPORTIONS 8,872
AS IF THOSE AMOUNTS HAD BEEN LEVIED AND COLLECTED AS TAXES. 8,873
(E)(1) NOT LATER THAN JANUARY 1, 2002, FOR EACH SCHOOL 8,875
DISTRICT AND JOINT VOCATIONAL SCHOOL DISTRICT, THE TAX 8,876
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND
MANAGEMENT THE FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) 8,877
OF SECTION 5727.84 OF THE REVISED CODE. THE CERTIFICATION SHALL 8,879
COVER A TIME PERIOD SUFFICIENT TO INCLUDE ALL FIXED-SUM LEVIES IN 8,880
EFFECT IN 1998 TO JUNE 30, 1999, UNTIL THEY ARE NO LONGER IN 8,881
EFFECT. THE DIRECTOR SHALL PAY FROM THE SCHOOL DISTRICT PROPERTY 8,882
TAX REPLACEMENT FUND TO THE COUNTY UNDIVIDED INCOME TAX FUND IN 8,883
THE PROPER COUNTY TREASURY ONE-HALF OF THE FIXED-SUM LEVY LOSS SO 8,884
CERTIFIED FOR EACH YEAR ON OR BEFORE EACH OF THE DAYS PRESCRIBED 8,885
FOR THE SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 8,886
210
OF THE REVISED CODE. THE COUNTY TREASURER SHALL DISTRIBUTE THE 8,887
AMOUNTS TO THE PROPER SCHOOL DISTRICT OR JOINT VOCATIONAL SCHOOL 8,888
DISTRICT AS IF THEY HAD BEEN LEVIED AND COLLECTED AS TAXES, AND 8,889
THE DISTRICT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG ITS 8,890
FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED 8,891
AND COLLECTED AS TAXES. NO PAYMENTS SHALL BE MADE UNDER THIS 8,892
DIVISION ONCE ALL FIXED-SUM LEVIES IN EFFECT IN 1998 TO JUNE 30, 8,893
1999, ARE NO LONGER IN EFFECT. 8,894
(2) BEGINNING IN 2003 AND ENDING IN 2016, BY THE 8,896
THIRTY-FIRST DAY OF JANUARY OF EACH YEAR, THE TAX COMMISSIONER 8,897
SHALL REVIEW THE CERTIFICATION ORIGINALLY MADE UNDER DIVISION 8,899
(E)(1) OF THIS SECTION. IF THE COMMISSIONER DETERMINES THAT A 8,900
FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 8,901
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 8,902
ALL SUBSEQUENT YEARS SHALL BE MADE TO THE DIRECTOR OF BUDGET AND 8,903
MANAGEMENT. 8,904
(F) BY AUGUST 5, 2002, THE TAX COMMISSIONER SHALL ESTIMATE 8,907
THE AMOUNT OF MONEY IN THE SCHOOL DISTRICT PROPERTY TAX 8,908
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE 8,909
PAYMENTS IN THAT MONTH UNDER DIVISIONS (C), (D), AND (E) OF THIS 8,910
SECTION. NOTWITHSTANDING DIVISION (C) OF THIS SECTION, THE 8,911
DEPARTMENT OF EDUCATION, IN CONSULTATION WITH THE TAX 8,912
COMMISSIONER AND FROM THOSE EXCESS FUNDS, MAY PAY ANY SCHOOL 8,914
DISTRICT FOUR AND ONE-HALF TIMES THE AMOUNT CERTIFIED UNDER
DIVISION (A)(2) OF THIS SECTION. PAYMENTS SHALL BE MADE IN ORDER 8,915
FROM THE SMALLEST ANNUAL LOSS TO THE LARGEST ANNUAL LOSS. A 8,916
PAYMENT MADE UNDER THIS DIVISION SHALL BE IN LIEU OF THE PAYMENT 8,918
TO BE MADE IN AUGUST 2002 UNDER DIVISION (C)(2) OF THIS SECTION. 8,919
NO PAYMENTS SHALL BE MADE IN THE MANNER ESTABLISHED IN THIS 8,920
DIVISION TO ANY SCHOOL DISTRICT WITH ANNUAL LOSSES FROM PERMANENT 8,921
IMPROVEMENT FIXED-RATE LEVIES IN EXCESS OF TWENTY THOUSAND 8,922
DOLLARS, OR ANNUAL LOSSES FROM ANY OTHER FIXED-RATE LEVIES IN 8,923
EXCESS OF TWENTY THOUSAND DOLLARS. A SCHOOL DISTRICT RECEIVING A 8,924
PAYMENT UNDER THIS DIVISION IS NO LONGER ENTITLED TO ANY FURTHER 8,925
211
PAYMENTS UNDER DIVISION (C) OF THIS SECTION. 8,926
(G) ON THE THIRTY-FIRST DAY OF JULY OF 2003, 2004, 2005, 8,928
AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY OF 2007 8,930
AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE SCHOOL 8,931
DISTRICT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT NEEDED 8,932
TO MAKE PAYMENTS FROM THE FUND UNDER DIVISIONS (C), (D), AND (E) 8,933
OF THIS SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET 8,935
AND MANAGEMENT SHALL DISTRIBUTE THE EXCESS AMONG SCHOOL DISTRICTS 8,936
AND JOINT VOCATIONAL SCHOOL DISTRICTS. THE AMOUNT DISTRIBUTED TO 8,938
EACH DISTRICT SHALL BEAR THE SAME PROPORTION TO THE EXCESS 8,939
REMAINING IN THE FUND AS THE ADM OF THE DISTRICT BEARS TO THE ADM 8,940
OF ALL OF THE DISTRICTS. FOR THE PURPOSE OF THIS DIVISION, "ADM" 8,941
MEANS THE FORMULA ADM IN THE CASE OF A SCHOOL DISTRICT, AND THE 8,943
AVERAGE DAILY MEMBERSHIP REPORTED UNDER SECTION 3317.03 OF THE 8,944
REVISED CODE IN THE CASE OF A JOINT VOCATIONAL SCHOOL DISTRICT. 8,945
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 8,947
MANAGEMENT, THE EXCESS REMAINING IN THE SCHOOL DISTRICT PROPERTY 8,948
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 8,949
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 8,950
CREDIT OF THE FUND.
AMOUNTS RECEIVED BY A SCHOOL DISTRICT OR JOINT VOCATIONAL 8,952
SCHOOL DISTRICT UNDER THIS DIVISION SHALL BE USED EXCLUSIVELY FOR 8,953
CAPITAL IMPROVEMENTS. 8,954
(H) IF THE TOTAL AMOUNT IN THE SCHOOL DISTRICT PROPERTY 8,956
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 8,957
DIVISIONS (C), (D), AND (E) OF THIS SECTION, THE PAYMENTS 8,958
REQUIRED UNDER DIVISION (E) OF THIS SECTION SHALL BE MADE FIRST 8,959
IN THEIR ENTIRETY. AFTER ALL PAYMENTS ARE MADE UNDER DIVISION 8,960
(E) OF THIS SECTION, PAYMENTS UNDER DIVISIONS (C) AND (D) OF THIS 8,961
SECTION SHALL BE MADE FROM THE BALANCE OF MONEY AVAILABLE IN THE 8,962
PROPORTION OF EACH SCHOOL DISTRICT'S OR JOINT VOCATIONAL SCHOOL 8,963
DISTRICT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF PAYMENTS UNDER 8,964
DIVISIONS (C) AND (D) OF THIS SECTION. 8,965
(I) IF ALL OR A PART OF THE TERRITORY OF A SCHOOL DISTRICT 8,967
212
OR JOINT VOCATIONAL SCHOOL DISTRICT IS MERGED WITH OR TRANSFERRED 8,968
TO ANOTHER DISTRICT, THE TAX COMMISSIONER SHALL ADJUST THE
PAYMENTS MADE UNDER THIS SECTION TO EACH OF THE DISTRICTS IN 8,969
PROPORTION TO THE TAX VALUE LOSS APPORTIONED TO THE MERGED OR 8,970
TRANSFERRED TERRITORY. 8,971
(J) THERE IS HEREBY CREATED THE ELECTRIC PROPERTY TAX 8,973
STUDY COMMITTEE, EFFECTIVE JANUARY 1, 2011. THE COMMITTEE SHALL 8,974
CONSIST OF THE FOLLOWING SEVEN MEMBERS: THE TAX COMMISSIONER, 8,975
THREE MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT OF THE 8,976
SENATE, AND THREE MEMBERS OF THE HOUSE OF REPRESENTATIVES 8,977
APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. THE 8,978
APPOINTMENTS SHALL BE MADE NOT LATER THAN JANUARY 31, 2011. THE 8,979
TAX COMMISSIONER SHALL BE THE CHAIRPERSON OF THE COMMITTEE. 8,980
THE COMMITTEE SHALL STUDY THE EXTENT TO WHICH EACH SCHOOL 8,982
DISTRICT OR JOINT VOCATIONAL SCHOOL DISTRICT HAS BEEN 8,983
COMPENSATED, UNDER SECTIONS 5727.84 AND 5727.85 OF THE REVISED 8,984
CODE AS ENACTED BY SUBSTITUTE SENATE BILL NO. 3 OF THE 123rd 8,985
GENERAL ASSEMBLY AND ANY SUBSEQUENT ACTS, FOR THE PROPERTY TAX 8,986
LOSS CAUSED BY THE REDUCTION IN THE ASSESSMENT RATES FOR ELECTRIC
AND RURAL ELECTRIC COMPANY TANGIBLE PERSONAL PROPERTY. NOT LATER 8,987
THAN JUNE 30, 2011, THE COMMITTEE SHALL ISSUE A REPORT OF ITS 8,988
FINDINGS, INCLUDING ANY RECOMMENDATIONS FOR PROVIDING ADDITIONAL 8,989
COMPENSATION FOR THE PROPERTY TAX LOSS OR REGARDING REMEDIAL
LEGISLATION, TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF 8,990
THE HOUSE OF REPRESENTATIVES, AT WHICH TIME THE COMMITTEE SHALL 8,991
CEASE TO EXIST.
THE DEPARTMENT OF TAXATION AND DEPARTMENT OF EDUCATION 8,993
SHALL PROVIDE SUCH INFORMATION AND ASSISTANCE AS IS REQUIRED FOR 8,994
THE COMMITTEE TO CARRY OUT ITS DUTIES. 8,995
Sec. 5727.86. (A) NOT LATER THAN JANUARY 1, 2002, THE TAX 8,997
COMMISSIONER SHALL CERTIFY TO THE DIRECTOR OF BUDGET AND 8,998
MANAGEMENT, FOR ALL TAXING DISTRICTS IN EACH LOCAL TAXING UNIT,
THE FIXED-RATE LEVY LOSS DETERMINED UNDER DIVISION (D), AND THE 8,999
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E), OF SECTION 9,000
213
5727.84 OF THE REVISED CODE. BASED ON THAT CERTIFICATION, THE 9,001
DIRECTOR SHALL COMPUTE THE PAYMENTS TO BE MADE TO EACH LOCAL 9,002
TAXING UNIT FOR EACH YEAR ACCORDING TO DIVISIONS (A)(1), (2), AND 9,003
(3) AND DIVISION (E) OF THIS SECTION, AND SHALL DISTRIBUTE THE 9,005
PAYMENTS IN THE MANNER PRESCRIBED BY DIVISION (C) OF THIS 9,006
SECTION. THE CERTIFICATION OF THE FIXED-SUM LEVY LOSS SHALL 9,007
COVER A PERIOD OF TIME SUFFICIENT TO INCLUDE ALL FIXED-SUM LEVIES 9,008
IN EFFECT IN 1998 TO JUNE 30, 1999, UNTIL THEY ARE NO LONGER IN 9,009
EFFECT.
(1) EXCEPT AS PROVIDED IN DIVISION (A)(3) OF THIS SECTION, 9,011
FOR FIXED-RATE LEVY LOSSES DETERMINED UNDER DIVISION (D) OF 9,012
SECTION 5727.84 OF THE REVISED CODE, PAYMENTS SHALL BE MADE IN 9,013
EACH OF THE FOLLOWING YEARS AT THE FOLLOWING PERCENTAGE OF THE 9,014
FIXED-RATE LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 9,015
SECTION:
YEAR PERCENTAGE 9,018
2002 100% 9,020
2003 100% 9,021
2004 100% 9,022
2005 100% 9,023
2006 100% 9,024
2007 80% 9,025
2008 80% 9,026
2009 80% 9,027
2010 80% 9,028
2011 80% 9,029
2012 66.7% 9,030
2013 53.4% 9,031
2014 40.1% 9,032
2015 26.8% 9,033
2016 13.5% 9,035
2017 AND THEREAFTER 0% 9,037
(2) FOR FIXED-SUM LEVY LOSSES DETERMINED UNDER DIVISION 9,040
(E) OF SECTION 5727.84 OF THE REVISED CODE, ONE HUNDRED PER CENT 9,041
214
OF THE FIXED-SUM LEVY LOSS CERTIFIED UNDER DIVISION (A) OF THIS 9,042
SECTION FOR PAYMENTS REQUIRED TO BE MADE IN 2002 AND THEREAFTER. 9,043
(3) A LOCAL TAXING UNIT IN A COUNTY OF LESS THAN TWO 9,045
HUNDRED FIFTY SQUARE MILES THAT RECEIVES EIGHTY PER CENT OR MORE 9,046
OF ITS COMBINED GENERAL FUND AND BOND RETIREMENT FUND REVENUES 9,047
FROM PROPERTY TAXES AND ROLLBACKS BASED ON 1997 ACTUAL REVENUES 9,048
AS PRESENTED IN ITS 1999 TAX BUDGET, AND IN WHICH ELECTRIC 9,049
COMPANIES AND RURAL ELECTRIC COMPANIES COMPRISE OVER TWENTY PER 9,050
CENT OF ITS PROPERTY VALUATION, SHALL RECEIVE ONE HUNDRED PER 9,051
CENT OF ITS FIXED-RATE LEVY LOSSES CERTIFIED UNDER DIVISION (A) 9,052
OF THIS SECTION IN YEARS 2002 TO 2016. 9,053
(B) BEGINNING IN 2003, BY THE THIRTY-FIRST DAY OF JANUARY 9,056
OF EACH YEAR, THE TAX COMMISSIONER SHALL REVIEW THE CERTIFICATION 9,057
ORIGINALLY MADE UNDER DIVISION (A) OF THIS SECTION OF THE 9,058
FIXED-SUM LEVY LOSS DETERMINED UNDER DIVISION (E) OF SECTION 9,059
5727.84 OF THE REVISED CODE. IF THE COMMISSIONER DETERMINES THAT 9,061
A FIXED-SUM LEVY THAT HAD BEEN SCHEDULED TO BE REIMBURSED IN THE 9,062
CURRENT YEAR HAS EXPIRED, A REVISED CERTIFICATION FOR THAT AND 9,063
ALL SUBSEQUENT YEARS SHALL BE MADE. 9,064
(C) PAYMENTS TO LOCAL TAXING UNITS REQUIRED TO BE MADE 9,066
UNDER DIVISIONS (A) AND (E) OF THIS SECTION SHALL BE PAID FROM 9,067
THE LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND TO THE COUNTY 9,069
UNDIVIDED INCOME TAX FUND IN THE PROPER COUNTY TREASURY. 9,070
ONE-HALF OF THE AMOUNT CERTIFIED UNDER THOSE DIVISIONS SHALL BE 9,071
PAID ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE SETTLEMENTS 9,072
UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE REVISED 9,074
CODE. THE COUNTY TREASURER SHALL DISTRIBUTE AMOUNTS PAID UNDER 9,075
DIVISION (A) OF THIS SECTION TO THE PROPER LOCAL TAXING UNIT AS 9,076
IF THEY HAD BEEN LEVIED AND COLLECTED AS TAXES, AND THE LOCAL
TAXING UNIT SHALL APPORTION THE AMOUNTS SO RECEIVED AMONG ITS 9,077
FUNDS IN THE SAME PROPORTIONS AS IF THOSE AMOUNTS HAD BEEN LEVIED
AND COLLECTED AS TAXES. AMOUNTS DISTRIBUTED UNDER DIVISION (E) 9,078
OF THIS SECTION SHALL BE CREDITED TO THE GENERAL FUND OF THE 9,079
LOCAL TAXING UNIT THAT RECEIVES THEM. 9,080
215
(D) BY FEBRUARY 5, 2002, THE TAX COMMISSIONER SHALL 9,082
ESTIMATE THE AMOUNT OF MONEY IN THE LOCAL GOVERNMENT PROPERTY TAX 9,083
REPLACEMENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO MAKE
PAYMENTS IN THAT MONTH UNDER DIVISION (C) OF THIS SECTION. 9,084
NOTWITHSTANDING DIVISION (A) OF THIS SECTION, THE TAX 9,085
COMMISSIONER MAY PAY ANY LOCAL TAXING UNIT, FROM THOSE EXCESS
FUNDS, NINE AND FOUR-TENTHS TIMES THE AMOUNT COMPUTED FOR 2002 9,086
UNDER DIVISION (A)(1) OF THIS SECTION. A PAYMENT MADE UNDER THIS 9,087
DIVISION SHALL BE IN LIEU OF THE PAYMENT TO BE MADE IN FEBRUARY 9,088
2002 UNDER DIVISION (A)(1) OF THIS SECTION. A LOCAL TAXING UNIT 9,089
RECEIVING A PAYMENT UNDER THIS DIVISION WILL NO LONGER BE 9,090
ENTITLED TO ANY FURTHER PAYMENTS UNDER DIVISION (A)(1) OF THIS 9,091
SECTION.
(E) ON THE THIRTY-FIRST DAY OF JULY OF 2002, 2003, 2004, 9,093
2005, AND 2006, AND ON THE THIRTY-FIRST DAY OF JANUARY AND JULY 9,095
OF 2007 AND EACH YEAR THEREAFTER, IF THE AMOUNT CREDITED TO THE 9,096
LOCAL GOVERNMENT PROPERTY TAX REPLACEMENT FUND EXCEEDS THE AMOUNT 9,097
NEEDED TO BE DISTRIBUTED FROM THE FUND UNDER DIVISION (A) OF THIS 9,098
SECTION IN THE FOLLOWING MONTH, THE DIRECTOR OF BUDGET AND 9,099
MANAGEMENT SHALL DISTRIBUTE THE EXCESS TO EACH COUNTY AS FOLLOWS: 9,100
(1) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN 9,102
PROPORTION TO EACH COUNTY'S POPULATION. 9,103
(2) ONE-HALF SHALL BE DISTRIBUTED TO EACH COUNTY IN THE 9,105
PROPORTION THAT THE AMOUNTS DETERMINED UNDER DIVISIONS (D) AND 9,107
(E) OF SECTION 5727.84 OF THE REVISED CODE FOR ALL TAXING 9,108
DISTRICTS IN THE COUNTY IS OF THE TOTAL AMOUNTS SO DETERMINED FOR 9,109
ALL TAXING DISTRICTS IN THE STATE. 9,110
THE AMOUNTS DISTRIBUTED TO EACH COUNTY UNDER THIS DIVISION 9,112
SHALL BE DISTRIBUTED BY THE COUNTY BUDGET COMMISSION TO EACH 9,113
LOCAL TAXING UNIT IN THE COUNTY IN THE PROPORTION THAT THE UNIT'S 9,114
CURRENT TAXES CHARGED AND PAYABLE ARE OF THE TOTAL CURRENT TAXES 9,115
CHARGED AND PAYABLE OF ALL THE LOCAL TAXING UNITS IN THE COUNTY. 9,116
AS USED IN THIS DIVISION, "CURRENT TAXES CHARGED AND PAYABLE" 9,117
MEANS THE TAXES CHARGED AND PAYABLE AS MOST RECENTLY DETERMINED 9,118
216
FOR LOCAL TAXING UNITS IN THE COUNTY. 9,119
IF, IN THE OPINION OF THE DIRECTOR OF BUDGET AND 9,121
MANAGEMENT, THE EXCESS REMAINING IN THE LOCAL GOVERNMENT PROPERTY 9,122
TAX REPLACEMENT FUND IN ANY YEAR IS NOT SUFFICIENT TO WARRANT 9,123
DISTRIBUTION UNDER THIS DIVISION, THE EXCESS SHALL REMAIN TO THE 9,124
CREDIT OF THE FUND.
(F) IF THE TOTAL AMOUNT IN THE LOCAL GOVERNMENT PROPERTY 9,126
TAX REPLACEMENT FUND IS INSUFFICIENT TO MAKE ALL PAYMENTS UNDER 9,127
DIVISION (C) OF THIS SECTION, THE PAYMENTS REQUIRED UNDER 9,128
DIVISION (A)(2) OF THIS SECTION SHALL BE MADE FIRST IN THEIR 9,129
ENTIRETY. AFTER ALL SUCH PAYMENTS ARE MADE, PAYMENTS UNDER 9,130
DIVISIONS (A)(1) AND (3) OF THIS SECTION SHALL BE MADE FROM THE 9,131
BALANCE OF MONEY AVAILABLE IN THE PROPORTION OF EACH LOCAL TAXING 9,132
UNIT'S PAYMENT AMOUNT TO THE TOTAL AMOUNT OF ALL PAYMENTS TO BE 9,133
MADE UNDER DIVISIONS (A)(1) AND (3) OF THIS SECTION. 9,135
(G) IF ALL OR A PART OF THE TERRITORIES OF TWO OR MORE 9,137
LOCAL TAXING UNITS ARE MERGED, OR UNINCORPORATED TERRITORY OF A 9,138
TOWNSHIP IS ANNEXED BY A MUNICIPAL CORPORATION, THE TAX 9,139
COMMISSIONER SHALL ADJUST THE PAYMENTS MADE UNDER THIS SECTION TO 9,140
EACH OF THE LOCAL TAXING UNITS IN PROPORTION TO THE TAX VALUE 9,141
LOSS APPORTIONED TO THE MERGED OR ANNEXED TERRITORY, OR AS 9,142
OTHERWISE PROVIDED BY A WRITTEN AGREEMENT BETWEEN THE LEGISLATIVE 9,143
AUTHORITIES OF THE LOCAL TAXING UNITS CERTIFIED TO THE TAX 9,144
COMMISSIONER NOT LATER THAN THE FIRST DAY OF JUNE OF THE CALENDAR 9,145
YEAR IN WHICH THE PAYMENT IS TO BE MADE. 9,146
Sec. 5727.87. (A) AS USED IN THIS SECTION: 9,148
(1) "ADMINISTRATIVE FEES" MEANS THE DOLLAR PERCENTAGES 9,150
ALLOWED BY THE COUNTY AUDITOR FOR SERVICES OR BY THE COUNTY 9,151
TREASURER AS FEES, OR PAID TO THE CREDIT OF THE REAL ESTATE 9,152
ASSESSMENT FUND, UNDER DIVISIONS (A) AND (B) OF SECTION 319.54 9,153
AND DIVISION (A) OF SECTION 321.26 OF THE REVISED CODE. 9,155
(2) "ADMINISTRATIVE FEE LOSS" MEANS A COUNTY'S LOSS OF 9,157
ADMINISTRATIVE FEES DUE TO ITS TAX VALUE LOSS, DETERMINED AS 9,158
FOLLOWS:
217
(a) FOR PURPOSES OF THE DETERMINATION MADE UNDER DIVISION 9,160
(B) OF THIS SECTION IN THE YEARS 2002 THROUGH 2006, THE 9,162
ADMINISTRATIVE FEE LOSS SHALL BE COMPUTED BY MULTIPLYING THE 9,163
AMOUNTS DETERMINED FOR ALL TAXING DISTRICTS IN THE COUNTY UNDER 9,164
DIVISIONS (D) AND (E) OF SECTION 5727.84 OF THE REVISED CODE BY 9,166
NINE THOUSAND SIX HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER 9,168
CENT, IF TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 9,169
EXCEEDED ONE HUNDRED FIFTY MILLION DOLLARS, OR ONE AND ONE 9,170
THOUSAND ONE HUNDRED FIFTY-NINE TEN-THOUSANDTHS OF A PER CENT, IF 9,171
TOTAL TAXES COLLECTED IN THE COUNTY IN TAX YEAR 1998 WERE ONE 9,172
HUNDRED FIFTY MILLION DOLLARS OR LESS; 9,173
(b) FOR PURPOSES OF THE DETERMINATION UNDER DIVISION (B) 9,175
OF THIS SECTION IN THE YEARS 2007 THROUGH 2011, THE 9,177
ADMINISTRATIVE FEE LOSS SHALL BE DETERMINED BY SUBTRACTING FROM 9,178
THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES COLLECTED IN THE COUNTY 9,179
IN TAX YEAR 1998, THE DOLLAR AMOUNT OF ADMINISTRATIVE FEES 9,180
COLLECTED IN THE COUNTY IN THE CURRENT CALENDAR YEAR. 9,181
(B) NOT LATER THAN THE FIRST DAY OF JUNE OF 2002 THROUGH 9,183
2011, THE COUNTY AUDITOR SHALL DETERMINE THE ADMINISTRATIVE FEE 9,186
LOSS FOR THE COUNTY AND CERTIFY IT TO THE COUNTY BUDGET 9,187
COMMISSION. NOTWITHSTANDING DIVISIONS (C), (D), AND (E) OF 9,188
SECTION 5727.85 AND DIVISION (C) OF SECTION 5727.86 OF THE 9,190
REVISED CODE, PRIOR TO DISTRIBUTION BY THE COUNTY TREASURER OF 9,192
THE PAYMENTS PROVIDED UNDER THOSE DIVISIONS, THE COUNTY BUDGET 9,193
COMMISSION SHALL DEDUCT FROM THOSE PAYMENTS THE AMOUNT OF THE 9,194
ADMINISTRATIVE FEE LOSS CERTIFIED BY THE COUNTY AUDITOR, AS 9,195
FOLLOWS:
(1) SEVENTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 9,197
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISIONS (C), (D), 9,199
AND (E) OF SECTION 5727.85 OF THE REVISED CODE. 9,200
(2) THIRTY PER CENT OF THE ADMINISTRATIVE FEE LOSS SHALL 9,202
BE DEDUCTED FROM THE PAYMENTS PROVIDED UNDER DIVISION (C) OF 9,203
SECTION 5727.86 OF THE REVISED CODE. 9,204
(C) ON OR BEFORE EACH OF THE DAYS PRESCRIBED FOR THE 9,206
218
SETTLEMENTS UNDER DIVISIONS (A) AND (C) OF SECTION 321.24 OF THE 9,207
REVISED CODE IN THE YEARS 2002 THROUGH 2011, THE COUNTY BUDGET 9,209
COMMISSION SHALL PAY ONE-HALF OF THE AMOUNT OF THE ADMINISTRATIVE 9,210
FEE LOSS TO THE COUNTY AUDITOR, COUNTY TREASURER, OR REAL ESTATE 9,211
ASSESSMENT FUND AS IF THE AMOUNT HAD BEEN ALLOWED AS 9,212
ADMINISTRATIVE FEES, AND SHALL DEPOSIT THE AMOUNT IN THE SAME 9,213
FUNDS AS IF ALLOWED AS ADMINISTRATIVE FEES. 9,214
AFTER PAYMENT OF THE ADMINISTRATIVE FEE LOSS ON OR BEFORE 9,216
AUGUST 10, 2011, ALL PAYMENTS UNDER THIS SECTION SHALL CEASE. 9,217
Sec. 5727.88. THE TAX COMMISSIONER SHALL ADMINISTER 9,219
SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE AND MAY ADOPT 9,222
SUCH RULES AS ARE NECESSARY TO ADMINISTER THOSE SECTIONS. UPON 9,224
REQUEST OF THE TAX COMMISSIONER, THE PUBLIC UTILITIES COMMISSION
SHALL ASSIST THE TAX COMMISSIONER BY PROVIDING INFORMATION 9,225
REGARDING ANY ELECTRIC DISTRIBUTION COMPANY THAT IS SUBJECT TO 9,226
REGULATION BY THE COMMISSION. 9,227
Sec. 5727.89. (A) THE TAX COMMISSIONER MAY MAKE AN 9,230
ASSESSMENT, BASED ON ANY INFORMATION IN THE COMMISSIONER'S
POSSESSION, AGAINST ANY ELECTRIC DISTRIBUTION COMPANY, 9,231
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER THAT FAILS TO 9,234
FILE A RETURN OR PAY ANY TAX, INTEREST, OR ADDITIONAL CHARGE AS 9,235
REQUIRED BY SECTIONS 5727.80 TO 5727.95 OF THE REVISED CODE. 9,237
WHEN INFORMATION IN THE POSSESSION OF THE TAX COMMISSIONER 9,239
INDICATES THAT A PERSON LIABLE FOR THE TAX IMPOSED BY SECTION 9,241
5727.81 OF THE REVISED CODE HAS NOT PAID THE FULL AMOUNT OF TAX 9,244
DUE, THE COMMISSIONER MAY AUDIT A REPRESENTATIVE SAMPLE OF THE 9,245
PERSON'S BUSINESS AND MAY ISSUE AN ASSESSMENT BASED ON THE AUDIT. 9,246
THE COMMISSIONER SHALL GIVE THE PERSON ASSESSED WRITTEN NOTICE OF 9,247
THE ASSESSMENT BY PERSONAL SERVICE OR CERTIFIED MAIL. 9,248
THE TAX COMMISSIONER MAY ISSUE AN ASSESSMENT FOR WHICH THE 9,250
TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WAS DUE AND 9,251
UNPAID ON THE DATE THE PERSON WAS INFORMED BY AN AGENT OF THE TAX 9,253
COMMISSIONER OF AN INVESTIGATION OR AUDIT OF THE PERSON. ANY 9,254
PAYMENT OF THE TAX FOR THE PERIOD COVERED BY THE ASSESSMENT, 9,255
219
AFTER THE PERSON IS SO INFORMED, SHALL BE CREDITED AGAINST THE 9,256
ASSESSMENT. 9,257
A PENALTY OF FIFTEEN PER CENT SHALL BE ADDED TO ALL AMOUNTS 9,260
ASSESSED UNDER THIS SECTION. THE COMMISSIONER MAY ADOPT RULES 9,261
PROVIDING FOR THE REMISSION OF PENALTIES.
(B) UNLESS THE PARTY ASSESSED FILES WITH THE TAX 9,264
COMMISSIONER WITHIN THIRTY DAYS AFTER SERVICE OF THE NOTICE OF 9,265
ASSESSMENT, EITHER PERSONALLY OR BY CERTIFIED MAIL, A WRITTEN 9,266
PETITION FOR REASSESSMENT SIGNED BY THE PARTY ASSESSED OR THE 9,267
PARTY'S AUTHORIZED AGENT HAVING KNOWLEDGE OF THE FACTS, THE 9,268
ASSESSMENT IS FINAL AND THE AMOUNT OF THE ASSESSMENT IS DUE AND 9,269
PAYABLE FROM THE PARTY ASSESSED TO THE TREASURER OF STATE. THE 9,270
PETITION SHALL INDICATE THE OBJECTIONS OF THE PARTY ASSESSED, BUT 9,271
ADDITIONAL OBJECTIONS MAY BE RAISED IN WRITING PRIOR TO THE DATE 9,272
SHOWN ON THE FINAL DETERMINATION OF THE TAX COMMISSIONER. THE 9,273
COMMISSIONER SHALL GRANT THE PETITIONER A HEARING ON THE 9,274
PETITION, UNLESS WAIVED BY THE PETITIONER. 9,275
(C) THE COMMISSIONER MAY MAKE ANY CORRECTION TO THE 9,278
ASSESSMENT THAT THE COMMISSIONER FINDS PROPER AND SHALL ISSUE A 9,279
FINAL DETERMINATION THEREON. THE COMMISSIONER SHALL SERVE A COPY 9,280
OF THE FINAL DETERMINATION ON THE PETITIONER EITHER BY PERSONAL 9,281
SERVICE OR BY CERTIFIED MAIL, AND THE COMMISSIONER'S DECISION IN 9,282
THE MATTER IS FINAL, SUBJECT TO APPEAL UNDER SECTION 5717.02 OF 9,283
THE REVISED CODE. 9,285
(D) AFTER AN ASSESSMENT BECOMES FINAL, IF ANY PORTION OF 9,288
THE ASSESSMENT, INCLUDING ACCRUED INTEREST, REMAINS UNPAID, A 9,289
CERTIFIED COPY OF THE COMMISSIONER'S ENTRY MAKING THE ASSESSMENT 9,290
FINAL MAY BE FILED IN THE OFFICE OF THE CLERK OF THE COURT OF 9,291
COMMON PLEAS IN THE COUNTY IN WHICH THE PARTY ASSESSED RESIDES OR 9,292
IN WHICH THE PARTY'S BUSINESS IS CONDUCTED. IF THE PARTY 9,293
ASSESSED MAINTAINS NO PLACE OF BUSINESS IN THIS STATE AND IS NOT 9,294
A RESIDENT OF THIS STATE, THE CERTIFIED COPY OF THE ENTRY MAY BE 9,296
FILED IN THE OFFICE OF THE CLERK OF THE COURT OF COMMON PLEAS OF 9,297
FRANKLIN COUNTY. 9,298
220
THE CLERK, IMMEDIATELY UPON THE FILING OF THE ENTRY, SHALL 9,300
ENTER A JUDGMENT FOR THE STATE AGAINST THE PERSON ASSESSED IN THE 9,302
AMOUNT SHOWN ON THE ENTRY. THE JUDGMENT MAY BE FILED BY THE
CLERK IN A LOOSE-LEAF BOOK ENTITLED "SPECIAL JUDGMENTS FOR THE 9,303
KILOWATT-HOUR TAX," AND SHALL HAVE THE SAME EFFECT AS OTHER 9,304
JUDGMENTS. EXECUTION SHALL ISSUE UPON THE JUDGMENT AT THE 9,305
REQUEST OF THE TAX COMMISSIONER, AND ALL LAWS APPLICABLE TO SALES 9,306
ON EXECUTION SHALL APPLY TO SALES MADE UNDER THE JUDGMENT. 9,307
THE PORTION OF THE ASSESSMENT NOT PAID WITHIN THIRTY DAYS 9,309
AFTER THE DAY THE ASSESSMENT WAS ISSUED SHALL BEAR INTEREST AT 9,310
THE RATE PER ANNUM PRESCRIBED BY SECTION 5703.47 OF THE REVISED 9,313
CODE FROM THE DAY THE TAX COMMISSIONER ISSUES THE ASSESSMENT 9,314
UNTIL THE DAY THE ASSESSMENT IS PAID. INTEREST SHALL BE PAID IN 9,315
THE SAME MANNER AS THE TAX AND MAY BE COLLECTED BY THE ISSUANCE 9,316
OF AN ASSESSMENT UNDER THIS SECTION. 9,317
(E) IF THE TAX COMMISSIONER BELIEVES THAT COLLECTION OF 9,320
THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE WILL BE 9,322
JEOPARDIZED UNLESS PROCEEDINGS TO COLLECT OR SECURE COLLECTION OF 9,323
THE TAX ARE INSTITUTED WITHOUT DELAY, THE COMMISSIONER MAY ISSUE 9,324
A JEOPARDY ASSESSMENT AGAINST THE ELECTRIC DISTRIBUTION COMPANY, 9,325
SELF-ASSESSING PURCHASER, OR QUALIFIED END USER LIABLE FOR THE 9,328
TAX. UPON ISSUANCE OF THE JEOPARDY ASSESSMENT, THE COMMISSIONER 9,329
IMMEDIATELY SHALL FILE AN ENTRY WITH THE CLERK OF THE COURT OF 9,330
COMMON PLEAS IN THE MANNER PRESCRIBED BY DIVISION (D) OF THIS 9,331
SECTION. NOTICE OF THE JEOPARDY ASSESSMENT SHALL BE SERVED ON 9,332
THE PARTY ASSESSED OR THE PARTY'S LEGAL REPRESENTATIVE WITHIN 9,333
FIVE DAYS OF THE FILING OF THE ENTRY WITH THE CLERK. THE TOTAL 9,334
AMOUNT ASSESSED IS IMMEDIATELY DUE AND PAYABLE, UNLESS THE PARTY 9,335
ASSESSED FILES A PETITION FOR REASSESSMENT IN ACCORDANCE WITH 9,336
DIVISION (B) OF THIS SECTION AND PROVIDES SECURITY IN A FORM 9,338
SATISFACTORY TO THE COMMISSIONER AND IN AN AMOUNT SUFFICIENT TO 9,339
SATISFY THE UNPAID BALANCE OF THE ASSESSMENT. FULL OR PARTIAL 9,340
PAYMENT OF THE ASSESSMENT DOES NOT PREJUDICE THE COMMISSIONER'S 9,341
CONSIDERATION OF THE PETITION FOR REASSESSMENT. 9,342
221
(F) ALL MONEY COLLECTED BY THE TAX COMMISSIONER UNDER THIS 9,345
SECTION SHALL BE PAID TO THE TREASURER OF STATE, AND WHEN PAID 9,346
SHALL BE CONSIDERED AS REVENUE ARISING FROM THE TAX IMPOSED BY 9,347
SECTION 5727.81 OF THE REVISED CODE. 9,349
Sec. 5727.90. NO ASSESSMENT OF THE TAX IMPOSED BY SECTION 9,351
5727.81 OF THE REVISED CODE SHALL BE MADE BY THE TAX COMMISSIONER 9,354
MORE THAN FOUR YEARS AFTER THE DATE ON WHICH THE RETURN FOR THE 9,355
PERIOD ASSESSED WAS DUE OR FILED, WHICHEVER DATE IS LATER. THIS 9,356
SECTION DOES NOT BAR AN ASSESSMENT WHEN ANY OF THE FOLLOWING 9,357
OCCUR:
(A) THE PARTY ASSESSED FAILED TO FILE A RETURN AS REQUIRED 9,360
BY SECTION 5727.82 OF THE REVISED CODE; 9,362
(B) THE PARTY ASSESSED KNOWINGLY FILED A FALSE OR 9,365
FRAUDULENT RETURN;
(C) THE PARTY ASSESSED AND THE TAX COMMISSIONER WAIVED IN 9,368
WRITING THE TIME LIMITATION. 9,369
Sec. 5727.91. (A) THE TREASURER OF STATE SHALL REFUND THE 9,372
AMOUNT OF TAX PAID UNDER SECTION 5727.81 OF THE REVISED CODE THAT 9,374
WAS PAID ILLEGALLY OR ERRONEOUSLY, OR PAID ON AN ILLEGAL OR 9,375
ERRONEOUS ASSESSMENT. AN ELECTRIC DISTRIBUTION COMPANY OR 9,376
SELF-ASSESSING PURCHASER SHALL FILE AN APPLICATION FOR A REFUND 9,377
WITH THE TAX COMMISSIONER ON A FORM PRESCRIBED BY THE
COMMISSIONER, WITHIN FOUR YEARS OF THE ILLEGAL OR ERRONEOUS 9,378
PAYMENT OF THE TAX. 9,379
UPON THE FILING OF THE APPLICATION, THE COMMISSIONER SHALL 9,381
DETERMINE THE AMOUNT OF REFUND DUE AND CERTIFY THAT AMOUNT TO THE 9,383
DIRECTOR OF BUDGET AND MANAGEMENT AND THE TREASURER OF STATE FOR 9,384
PAYMENT FROM THE TAX REFUND FUND UNDER SECTION 5703.052 OF THE 9,385
REVISED CODE. IF THE APPLICATION FOR REFUND IS FOR TAXES PAID ON 9,387
AN ILLEGAL OR ERRONEOUS ASSESSMENT, THE TAX COMMISSIONER SHALL 9,388
INCLUDE IN THE CERTIFIED AMOUNT INTEREST CALCULATED AT THE RATE 9,389
PER ANNUM UNDER SECTION 5703.47 OF THE REVISED CODE FROM THE DATE 9,391
OF OVERPAYMENT TO THE DATE OF THE COMMISSIONER'S CERTIFICATION. 9,393
(B) IF AN ELECTRIC DISTRIBUTION COMPANY ENTITLED TO A 9,396
222
REFUND OF TAXES UNDER THIS SECTION IS INDEBTED TO THE STATE FOR 9,397
ANY TAX OR FEE ADMINISTERED BY THE TAX COMMISSIONER THAT IS PAID 9,398
TO THE STATE OR ANY CHARGE, PENALTY, OR INTEREST ARISING FROM 9,400
SUCH A TAX OR FEE, THE AMOUNT REFUNDABLE MAY BE APPLIED IN 9,401
SATISFACTION OF THE DEBT. IF THE AMOUNT REFUNDABLE IS LESS THAN 9,402
THE AMOUNT OF THE DEBT, IT MAY BE APPLIED IN PARTIAL SATISFACTION 9,403
OF THE DEBT. IF THE AMOUNT REFUNDABLE IS GREATER THAN THE AMOUNT 9,404
OF THE DEBT, THE AMOUNT REMAINING AFTER SATISFACTION OF THE DEBT 9,405
SHALL BE REFUNDED. IF THE ELECTRIC DISTRIBUTION COMPANY HAS MORE 9,406
THAN ONE SUCH DEBT, ANY DEBT SUBJECT TO SECTION 5739.33 OR 9,407
DIVISION (G) OF SECTION 5747.07 OF THE REVISED CODE SHALL BE 9,410
SATISFIED FIRST. THIS SECTION APPLIES ONLY TO DEBTS THAT HAVE 9,411
BECOME FINAL. 9,412
(C) ANY ELECTRIC DISTRIBUTION COMPANY THAT CAN 9,415
SUBSTANTIATE TO THE TAX COMMISSIONER THAT THE TAX IMPOSED BY 9,416
SECTION 5727.81 OF THE REVISED CODE WAS PAID ON ELECTRICITY 9,418
DISTRIBUTED VIA WIRES AND CONSUMED AT A LOCATION OUTSIDE OF THIS 9,419
STATE MAY CLAIM A REFUND IN THE MANNER AND WITHIN THE TIME PERIOD 9,420
PRESCRIBED IN DIVISION (A) OF THIS SECTION. 9,422
(D) BEFORE A REFUND IS ISSUED UNDER THIS SECTION, AN 9,424
ELECTRIC DISTRIBUTION COMPANY SHALL CERTIFY, AS PRESCRIBED BY THE 9,425
TAX COMMISSIONER, THAT IT EITHER DID NOT INCLUDE THE TAX IMPOSED 9,426
BY SECTION 5727.81 OF THE REVISED CODE IN ITS DISTRIBUTION CHARGE 9,427
TO AN ELECTRIC CUSTOMER UPON WHICH A REFUND OF THE TAX IS 9,428
CLAIMED, OR IT HAS REFUNDED OR CREDITED TO THE ELECTRIC CUSTOMER 9,429
THE EXCESS DISTRIBUTION CHARGE RELATED TO THE TAX THAT WAS 9,430
ERRONEOUSLY INCLUDED IN THE ELECTRIC CUSTOMER'S DISTRIBUTION
CHARGE. 9,431
Sec. 5727.92. EVERY PERSON LIABLE FOR THE TAX IMPOSED BY 9,434
SECTION 5727.81 OF THE REVISED CODE SHALL KEEP COMPLETE AND 9,436
ACCURATE RECORDS OF ALL ELECTRIC DISTRIBUTIONS AND OTHER RECORDS 9,437
AS REQUIRED BY THE TAX COMMISSIONER. THE RECORDS SHALL BE 9,439
PRESERVED FOR FOUR YEARS AFTER THE RETURN FOR THE TAXES TO WHICH 9,440
THE RECORDS PERTAIN IS DUE OR FILED, WHICHEVER IS LATER. THE 9,441
223
RECORDS SHALL BE AVAILABLE FOR INSPECTION BY THE TAX COMMISSIONER 9,442
OR THE COMMISSIONER'S AUTHORIZED AGENT, UPON REQUEST OF THE 9,443
COMMISSIONER OR SUCH AGENT.
Sec. 5727.93. (A) NO PERSON SHALL DISTRIBUTE ELECTRICITY 9,446
TO A METER OF AN END USER IN THIS STATE WHO IS NOT REGISTERED 9,447
WITH THE TAX COMMISSIONER AS AN ELECTRIC DISTRIBUTION COMPANY. 9,448
(B) EACH PERSON REQUIRED TO REGISTER UNDER DIVISION (A) OF 9,452
THIS SECTION SHALL REGISTER PRIOR TO DISTRIBUTING ELECTRICITY TO 9,453
A METER OF AN END USER IN THIS STATE. THE TAX COMMISSIONER SHALL 9,454
PRESCRIBE THE FORM OF THE REGISTRATION APPLICATION. THE
COMMISSIONER SHALL ASSIGN AN IDENTIFICATION NUMBER TO EACH 9,455
REGISTRATION AND NOTIFY THE REGISTRANT OF THAT NUMBER. THE 9,456
REGISTRATION SHALL REMAIN IN EFFECT UNTIL CANCELED IN WRITING BY 9,457
THE REGISTRANT UPON THE CESSATION OF DISTRIBUTING ELECTRICITY TO 9,458
A METER OF AN END USER IN THIS STATE OR UNTIL SUCH REGISTRATION 9,459
IS DENIED, REVOKED, OR CANCELED BY THE COMMISSIONER. A 9,460
REGISTRATION MAY BE REVOKED OR CANCELED BY THE TAX COMMISSIONER 9,461
AS PROVIDED BY CHAPTER 119. OF THE REVISED CODE, FOR FAILURE OF 9,464
AN ELECTRIC DISTRIBUTION COMPANY TO PAY THE TAX IMPOSED BY 9,465
SECTION 5727.81 OF THE REVISED CODE OR TO COMPLY WITH SECTIONS 9,467
5727.80 TO 5727.95 OF THE REVISED CODE. AN ELECTRIC DISTRIBUTION 9,470
COMPANY WHOSE REGISTRATION IS DENIED MAY PETITION FOR A HEARING, 9,471
IN ACCORDANCE WITH THE PROCEDURES SET FORTH IN DIVISIONS (B) AND 9,473
(C) OF SECTION 5727.89 OF THE REVISED CODE, NOT LATER THAN THIRTY 9,476
DAYS AFTER RECEIVING THE DENIAL, AND THE FINAL DETERMINATION IS 9,477
SUBJECT TO APPEAL UNDER SECTION 5717.02 OF THE REVISED CODE. 9,480
(C) THE TAX COMMISSIONER SHALL MAINTAIN A LIST OF THE 9,483
ELECTRIC DISTRIBUTION COMPANIES REGISTERED UNDER THIS SECTION. 9,484
THE LIST SHALL CONTAIN THE NAME AND ADDRESS OF EACH COMPANY 9,485
REGISTERED BY THE COMMISSIONER. THE LIST AND SUBSEQUENT UPDATES 9,486
OF IT SHALL BE OPEN TO PUBLIC INSPECTION.
Sec. 5727.94. EACH ELECTRIC DISTRIBUTION COMPANY REQUIRED 9,488
TO PAY THE TAX IMPOSED BY SECTION 5727.81 OF THE REVISED CODE 9,491
SHALL PROVIDE TO ITS CUSTOMERS IN THIS STATE THE STATEMENT 9,492
224
REQUIRED BY SECTION 4933.33 OF THE REVISED CODE. 9,494
Sec. 5727.95. (A) NO ELECTRIC DISTRIBUTION COMPANY OR 9,496
SELF-ASSESSING PURCHASER SHALL FAIL TO FILE ANY RETURN OR REPORT 9,498
REQUIRED TO BE FILED PURSUANT TO SECTION 5727.82 OF THE REVISED 9,500
CODE, OR FILE OR CAUSE TO BE FILED ANY INCOMPLETE, FALSE, OR 9,501
FRAUDULENT RETURN, REPORT, OR STATEMENT, OR AID OR ABET ANOTHER 9,502
IN THE FILING OF ANY FALSE OR FRAUDULENT RETURN, REPORT, OR 9,503
STATEMENT.
(B) NO PERSON SHALL DISTRIBUTE ELECTRICITY TO A METER OF 9,506
AN END USER IN THIS STATE WITHOUT HOLDING A VALID REGISTRATION 9,507
ISSUED UNDER SECTION 5727.93 OF THE REVISED CODE. 9,509
Sec. 5727.99. (A) Whoever violates section 5727.55 of the 9,518
Revised Code shall be fines FINED not less than one hundred nor 9,519
more than one thousand dollars. 9,520
(B) Whoever violates section 5727.71 of the Revised Code 9,522
shall be fined not more than five hundred dollars and imprisoned 9,523
not more than thirty days.
(C) Whoever violates section 5727.72 or 5727.73 of the 9,525
Revised Code shall be fined not more than five hundred dollars or 9,527
imprisoned not more than thirty days, or both. 9,528
(D) WHOEVER VIOLATES SECTIONS 5727.80 TO 5727.83, OR 9,530
SECTIONS 5727.88 TO 5727.95 OF THE REVISED CODE OR ANY RULE 9,533
ADOPTED BY THE TAX COMMISSIONER UNDER THOSE SECTIONS, IS GUILTY 9,534
OF A MISDEMEANOR OF THE FIRST DEGREE ON THE FIRST OFFENSE; ON 9,535
EACH SUBSEQUENT OFFENSE, THE PERSON IS GUILTY OF A FELONY OF THE 9,536
FOURTH DEGREE.
Sec. 5733.04. As used in this chapter: 9,545
(A) "Issued and outstanding shares of stock" applies to 9,547
nonprofit corporations, as provided in section 5733.01 of the 9,548
Revised Code, and includes, but is not limited to, membership 9,549
certificates and other instruments evidencing ownership of an 9,550
interest in such nonprofit corporations, and with respect to a 9,551
financial institution which THAT does not have capital stock, 9,552
"issued and outstanding shares of stock" includes, but is not 9,554
225
limited to, ownership interests of depositors in the capital 9,555
employed in such an institution. 9,556
(B) "Taxpayer" means a corporation subject to the tax 9,558
imposed by section 5733.06 of the Revised Code. 9,559
(C) "Resident" means a corporation organized under the 9,561
laws of this state. 9,562
(D) "Commercial domicile" means the principal place from 9,564
which the trade or business of the taxpayer is directed or 9,565
managed. 9,566
(E) "Taxable year" means the period prescribed by division 9,569
(A) of section 5733.031 of the Revised Code upon the net income 9,571
of which the value of the taxpayer's issued and outstanding 9,572
shares of stock is determined under division (B) of section 9,574
5733.05 of the Revised Code or the period prescribed by division 9,575
(A) of section 5733.031 of the Revised Code that immediately 9,577
precedes the date as of which the total value of the corporation 9,579
is determined under division (A) or (C) of section 5733.05 of the 9,580
Revised Code.
(F) "Tax year" means the calendar year in and for which 9,582
the tax imposed by section 5733.06 of the Revised Code is 9,584
required to be paid.
(G) "Internal Revenue Code" means the "Internal Revenue 9,586
Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. 9,587
(H) "Federal income tax" means the income tax imposed by 9,589
the Internal Revenue Code. 9,590
(I) Except as provided in section 5733.058 of the Revised 9,592
Code, "net income" means the taxpayer's taxable income before 9,594
operating loss deduction and special deductions, as required to 9,595
be reported for the taxpayer's taxable year under the Internal 9,596
Revenue Code, subject to the following adjustments:
(1)(a) Deduct any net operating loss incurred in any 9,598
taxable years ending in 1971 or thereafter but exclusive of any 9,599
net operating loss incurred in taxable years ending prior to 9,600
January 1, 1971. This deduction shall not be allowed in any tax 9,601
226
year commencing before December 31, 1973, but shall be carried 9,602
over and allowed in tax years commencing after December 31, 1973, 9,603
until fully utilized in the next succeeding taxable year or years 9,604
in which the taxpayer has net income, but in no case for more 9,605
than the designated carryover period as described in division 9,606
(I)(1)(b) of this section. The amount of such net operating 9,607
loss, as determined under the allocation and apportionment 9,608
provisions of section 5733.051 and division (B) of section 9,609
5733.05 of the Revised Code for the year in which the net 9,610
operating loss occurs, shall be deducted from net income, as 9,611
determined under the allocation and apportionment provisions of 9,612
section 5733.051 and division (B) of section 5733.05 of the 9,613
Revised Code, to the extent necessary to reduce net income to 9,614
zero with the remaining unused portion of the deduction, if any, 9,615
carried forward to the remaining years of the designated 9,616
carryover period as described in division (I)(1)(b) of this 9,617
section, or until fully utilized, whichever occurs first. 9,618
(b) For losses incurred in taxable years ending on or 9,620
before December 31, 1981, the designated carryover period shall 9,621
be the five consecutive taxable years after the taxable year in 9,622
which the net operating loss occurred. For losses incurred in 9,623
taxable years ending on or after January 1, 1982, the designated 9,624
carryover period shall be the fifteen consecutive taxable years 9,625
after the taxable year in which the net operating loss occurs. 9,626
(c) The tax commissioner may require a taxpayer to furnish 9,628
any information necessary to support a claim for deduction under 9,629
division (I)(1)(a) of this section and no deduction shall be 9,630
allowed unless the information is furnished. 9,631
(2) Deduct any amount included in net income by 9,633
application of section 78 or 951 of the Internal Revenue Code, 9,634
amounts received for royalties, technical or other services 9,635
derived from sources outside the United States, and dividends 9,636
received from a subsidiary, associate, or affiliated corporation 9,637
that neither transacts any substantial portion of its business 9,638
227
nor regularly maintains any substantial portion of its assets 9,639
within the United States. For purposes of determining net 9,640
foreign source income deductible under division (I)(2) of this 9,641
section, the amount of gross income from all such sources other 9,642
than income derived by application of section 78 or 951 of the 9,643
Internal Revenue Code shall be reduced by: 9,644
(a) The amount of any reimbursed expenses for personal 9,646
services performed by employees of the taxpayer for the 9,647
subsidiary, associate, or affiliated corporation; 9,648
(b) Ten per cent of the amount of royalty income and 9,650
technical assistance fees; 9,651
(c) Fifteen per cent of the amount of dividends and all 9,653
other income. 9,654
The amounts described in divisions (I)(2)(a) to (c) of this 9,656
section are deemed to be the expenses attributable to the 9,657
production of deductible foreign source income unless the 9,658
taxpayer shows, by clear and convincing evidence, less actual 9,659
expenses, or the tax commissioner shows, by clear and convincing 9,660
evidence, more actual expenses. 9,661
(3) Add any loss or deduct any gain resulting from the 9,663
sale, exchange, or other disposition of a capital asset, or an 9,664
asset described in section 1231 of the Internal Revenue Code, to 9,665
the extent that such loss or gain occurred prior to the first 9,666
taxable year on which the tax provided for in section 5733.06 of 9,667
the Revised Code is computed on the corporation's net income. 9,668
For purposes of division (I)(3) of this section, the amount of 9,669
the prior loss or gain shall be measured by the difference 9,670
between the original cost or other basis of the asset and the 9,671
fair market value as of the beginning of the first taxable year 9,672
on which the tax provided for in section 5733.06 of the Revised 9,673
Code is computed on the corporation's net income. At the option 9,674
of the taxpayer, the amount of the prior loss or gain may be a 9,675
percentage of the gain or loss, which percentage shall be 9,676
determined by multiplying the gain or loss by a fraction, the 9,677
228
numerator of which is the number of months from the acquisition 9,678
of the asset to the beginning of the first taxable year on which 9,679
the fee provided in section 5733.06 of the Revised Code is 9,680
computed on the corporation's net income, and the denominator of 9,681
which is the number of months from the acquisition of the asset 9,682
to the sale, exchange, or other disposition of the asset. THE 9,684
ADJUSTMENTS DESCRIBED IN THIS DIVISION DO NOT APPLY TO ANY GAIN 9,685
OR LOSS WHERE THE GAIN OR LOSS IS RECOGNIZED BY A QUALIFYING 9,686
TAXPAYER, AS DEFINED IN SECTION 5733.0510 OF THE REVISED CODE, 9,687
WITH RESPECT TO A QUALIFYING TAXABLE EVENT, AS DEFINED IN THAT 9,689
SECTION.
(4) Deduct the dividend received deduction provided by 9,691
section 243 of the Internal Revenue Code. 9,692
(5) Deduct any interest or interest equivalent on public 9,694
obligations and purchase obligations to the extent included in 9,695
federal taxable income. As used in divisions (I)(5) and (6) of 9,696
this section, "public obligations," "purchase obligations," and 9,697
"interest or interest equivalent" have the same meanings as in 9,698
section 5709.76 of the Revised Code. 9,699
(6) Add any loss or deduct any gain resulting from the 9,701
sale, exchange, or other disposition of public obligations to the 9,702
extent included in federal taxable income. 9,703
(7) To the extent not otherwise allowed, deduct any 9,705
dividends or distributions received by a taxpayer from a public 9,706
utility, EXCLUDING AN ELECTRIC COMPANY, if the taxpayer owns at 9,707
least eighty per cent of the issued and outstanding common stock 9,709
of the PUBLIC utility. As used in division (I)(7) of this 9,710
section, "public utility" or "utility" means a public utility as 9,711
defined in Chapter 5727. of the Revised Code, whether or not the 9,712
PUBLIC utility is doing business in the state.
(8) To the extent not otherwise allowed, deduct any 9,714
dividends received by a taxpayer from an insurance company, if 9,715
the taxpayer owns at least eighty per cent of the issued and 9,716
outstanding common stock of the insurance company. As used in 9,717
229
division (I)(8) of this section, "insurance company" means an 9,718
insurance company which THAT is taxable under Chapter 5725. or 9,719
5729. of the Revised Code. 9,720
(9) Deduct expenditures for modifying existing buildings 9,722
or structures to meet American national standards institute 9,723
standard A-117.1-1961 (R-1971), as amended; provided, that no 9,724
deduction shall be allowed to the extent that such deduction is 9,725
not permitted under federal law or under rules of the tax 9,726
commissioner. Those deductions as are allowed may be taken over 9,727
a period of five years. The tax commissioner shall adopt rules 9,728
under Chapter 119. of the Revised Code establishing reasonable 9,729
limitations on the extent that expenditures for modifying 9,730
existing buildings or structures are attributable to the purpose 9,731
of making the buildings or structures accessible to and usable by 9,732
physically handicapped persons. 9,733
(10) Deduct the amount of wages and salaries, if any, not 9,735
otherwise allowable as a deduction but that would have been 9,736
allowable as a deduction in computing federal taxable income 9,737
before operating loss deduction and special deductions for the 9,738
taxable year, had the targeted jobs credit allowed and determined 9,739
under sections 38, 51, and 52 of the Internal Revenue Code not 9,740
been in effect. 9,741
(11) Deduct net interest income on obligations of the 9,743
United States and its territories and possessions or of any 9,744
authority, commission, or instrumentality of the United States to 9,745
the extent the laws of the United States prohibit inclusion of 9,746
the net interest for purposes of determining the value of the 9,747
taxpayer's issued and outstanding shares of stock under division 9,748
(B) of section 5733.05 of the Revised Code. As used in division 9,749
(I)(11) of this section, "net interest" means interest net of any 9,750
expenses taken on the federal income tax return that would not 9,751
have been allowed under section 265 of the Internal Revenue Code 9,752
if the interest were exempt from federal income tax. 9,753
(12)(a) Except as set forth in division (I)(12)(d) of this 9,755
230
section, to the extent not included in computing the taxpayer's 9,756
federal taxable income before operating loss deduction and 9,757
special deductions, add gains and deduct losses from direct or 9,758
indirect sales, exchanges, or other dispositions, made by a 9,759
related entity who is not a taxpayer, of the taxpayer's indirect, 9,760
beneficial, or constructive investment in the stock or debt of 9,761
another entity, unless the gain or loss has been included in 9,762
computing the federal taxable income before operating loss 9,763
deduction and special deductions of another taxpayer with a more 9,764
closely related investment in the stock or debt of the other 9,765
entity. The amount of gain added or loss deducted shall not 9,766
exceed the product obtained by multiplying such gain or loss by 9,767
the taxpayer's proportionate share, directly, indirectly, 9,768
beneficially, or constructively, of the outstanding stock of the 9,769
related entity immediately prior to the direct or indirect sale, 9,770
exchange, or other disposition. 9,771
(b) Except as set forth in division (I)(12)(e) of this 9,773
section, to the extent not included in computing the taxpayer's 9,774
federal taxable income before operating loss deduction and 9,775
special deductions, add gains and deduct losses from direct or 9,776
indirect sales, exchanges, or other dispositions made by a 9,777
related entity who is not a taxpayer, of intangible property 9,778
other than stock, securities, and debt, if such property was 9,779
owned, or used in whole or in part, at any time prior to or at 9,780
the time of the sale, exchange, or disposition by either the 9,781
taxpayer or by a related entity that was a taxpayer at any time 9,782
during the related entity's ownership or use of such property, 9,783
unless the gain or loss has been included in computing the 9,784
federal taxable income before operating loss deduction and 9,785
special deductions of another taxpayer with a more closely 9,786
related ownership or use of such intangible property. The 9,787
amount of gain added or loss deducted shall not exceed the 9,788
product obtained by multiplying such gain or loss by the 9,789
taxpayer's proportionate share, directly, indirectly, 9,790
231
beneficially, or constructively, of the outstanding stock of the 9,791
related entity immediately prior to the direct or indirect sale, 9,792
exchange, or other disposition. 9,793
(c) As used in division (I)(12) of this section, "related 9,795
entity" means those entities described in divisions (I)(12)(c)(i) 9,796
to (iii) of this section: 9,797
(i) An individual stockholder, or a member of the 9,799
stockholder's family enumerated in section 318 of the Internal 9,800
Revenue Code, if the stockholder and the members of the 9,801
stockholder's family own, directly, indirectly, beneficially, or 9,802
constructively, in the aggregate, at least fifty per cent of the 9,803
value of the taxpayer's outstanding stock; 9,804
(ii) A stockholder, or a stockholder's partnership, 9,806
estate, trust, or corporation, if the stockholder and the 9,807
stockholder's partnerships, estates, trusts, and corporations own 9,808
directly, indirectly, beneficially, or constructively, in the 9,809
aggregate, at least fifty per cent of the value of the taxpayer's 9,810
outstanding stock; 9,811
(iii) A corporation, or a party related to the corporation 9,813
in a manner that would require an attribution of stock from the 9,814
corporation to the party or from the party to the corporation 9,815
under division (I)(12)(c)(iv) of this section, if the taxpayer 9,816
owns, directly, indirectly, beneficially, or constructively, at 9,817
least fifty per cent of the value of the corporation's 9,818
outstanding stock. 9,819
(iv) The attribution rules of section 318 of the Internal 9,821
Revenue Code apply for purposes of determining whether the 9,822
ownership requirements in divisions (I)(12)(c)(i) to (iii) of 9,823
this section have been met. 9,824
(d) For purposes of the adjustments required by division 9,826
(I)(12)(a) of this section, the term "investment in the stock or 9,827
debt of another entity" means only those investments where the 9,828
taxpayer and the taxpayer's related entities directly, 9,829
indirectly, beneficially, or constructively own, in the 9,830
232
aggregate, at any time during the twenty-four month period 9,831
commencing one year prior to the direct or indirect sale, 9,832
exchange, or other disposition of such investment at least fifty 9,833
per cent or more of the value of either the outstanding stock or 9,834
such debt of such other entity. 9,835
(e) For purposes of the adjustments required by division 9,837
(I)(12)(b) of this section, the term "related entity" excludes 9,838
all of the following: 9,839
(i) Foreign corporations as defined in section 7701 of the 9,841
Internal Revenue Code; 9,842
(ii) Foreign partnerships as defined in section 7701 of 9,844
the Internal Revenue Code; 9,845
(iii) Corporations, partnerships, estates, and trusts 9,847
created or organized in or under the laws of the Commonwealth of 9,848
Puerto Rico or any possession of the United States; 9,849
(iv) Foreign estates and foreign trusts as defined in 9,851
section 7701 of the Internal Revenue Code. 9,852
The exclusions described in divisions (I)(12)(e)(i) to (iv) 9,854
of this section do not apply if the corporation, partnership, 9,855
estate, or trust is described in any one of divisions (C)(1) to 9,856
(5) of section 5733.042 of the Revised Code. 9,857
(f) Nothing in division (I)(12) of this section shall 9,859
require or permit a taxpayer to add any gains or deduct any 9,860
losses described in divisions (I)(12)(f)(i) and (ii) of this 9,861
section: 9,862
(i) Gains or losses recognized for federal income tax 9,864
purposes by an individual, estate, or trust without regard to the 9,865
attribution rules described in division (I)(12)(c) of this 9,866
section, and; 9,867
(ii) A related entity's gains or losses described in 9,869
division (I)(12)(b) if the taxpayer's ownership of or use of such 9,870
intangible property was limited to a period not exceeding nine 9,871
months and was attributable to a transaction or a series of 9,872
transactions executed in accordance with the election or 9,873
233
elections made by the taxpayer or a related entity pursuant to 9,874
section 338 of the Internal Revenue Code. 9,875
(13) Any adjustment required by section 5733.042 of the 9,877
Revised Code. 9,878
(14) Add any amount claimed as a credit under section 9,881
5733.0611 of the Revised Code to the extent that such amount 9,884
satisfies either of the following:
(a) It was deducted or excluded from the computation of 9,886
the corporation's taxable income before operating loss deduction 9,888
and special deductions as required to be reported for the 9,889
corporation's taxable year under the Internal Revenue Code; 9,892
(b) It resulted in a reduction of the corporation's 9,894
taxable income before operating loss deduction and special 9,896
deductions as required to be reported for any of the 9,897
corporation's taxable years under the Internal Revenue Code. 9,900
(15) Deduct the amount contributed by the taxpayer to an 9,903
individual development account program established by a county 9,904
department of human services pursuant to sections 329.11 to 9,905
329.14 of the Revised Code for the purpose of matching funds 9,908
deposited by program participants. On request of the tax 9,909
commissioner, the taxpayer shall provide any information that, in 9,910
the tax commissioner's opinion, is necessary to establish the 9,911
amount deducted under division (I)(15) of this section. 9,912
(16) ANY ADJUSTMENT REQUIRED BY SECTION 5733.0510 OF THE 9,915
REVISED CODE.
(J) Any term used in this chapter has the same meaning as 9,917
when used in comparable context in the laws of the United States 9,918
relating to federal income taxes unless a different meaning is 9,919
clearly required. Any reference in this chapter to the Internal 9,920
Revenue Code includes other laws of the United States relating to 9,921
federal income taxes. 9,922
(K) "Financial institution" has the meaning given by 9,924
section 5725.01 of the Revised Code but does not include a 9,926
production credit association as described in 85 Stat. 597, 12 9,927
234
U.S.C.A. 2091. 9,929
(L)(1) A "qualifying holding company" is any corporation 9,932
satisfying all of the following requirements: 9,933
(a) Subject to divisions (L)(2) and (3) of this section, 9,936
the net book value of the corporation's intangible assets is 9,937
greater than or equal to ninety per cent of the net book value of 9,938
all of its assets and at least fifty per cent of the net book 9,939
value of all of its assets represents direct or indirect 9,940
investments in the equity of, loans and advances to, and accounts 9,942
receivable due from related members;
(b) At least ninety per cent of the corporation's gross 9,945
income for the taxable year is attributable to the following: 9,946
(i) The maintenance, management, ownership, acquisition, 9,948
use, and disposition of its intangible property, its aircraft the 9,950
use of which is not subject to regulation under 14 C.F.R. part 9,952
121 or part 135, and any real property described in division 9,953
(L)(2)(c) of this section; 9,955
(ii) The collection and distribution of income from such 9,958
property.
(c) The corporation is not a financial institution on the 9,961
last day of the taxable year ending prior to the first day of the 9,963
tax year;
(d) The corporation's related members make a good faith 9,966
and reasonable effort to make timely and fully the adjustments 9,967
required by division (C)(2) of section 5733.05 of the Revised 9,969
Code and to pay timely and fully all uncontested taxes, interest, 9,970
penalties, and other fees and charges imposed under this chapter; 9,971
(e) Subject to division (L)(4) of this section, the 9,974
corporation elects to be treated as a qualifying holding company 9,975
for the tax year. 9,976
A corporation otherwise satisfying divisions (L)(1)(a) to 9,980
(e) of this section that does not elect to be a qualifying 9,981
holding company is not a qualifying holding company for the 9,982
purposes of this chapter.
235
(2)(a)(i) For purposes of making the ninety per cent 9,985
computation under division (L)(1)(a) of this section, the net 9,988
book value of the corporation's assets shall not include the net 9,989
book value of aircraft or real property described in division 9,990
(L)(1)(b)(i) of this section. 9,992
(ii) For purposes of making the fifty per cent computation 9,995
under division (L)(1)(a) of this section, the net book value of 9,997
assets shall include the net book value of aircraft or real 9,998
property described in division (L)(1)(b)(i) of this section. 10,001
(b)(i) As used in division (L) of this section, 10,004
"intangible asset" includes, but is not limited to, the 10,005
corporation's direct interest in each pass-through entity only if 10,006
at all times during the corporation's taxable year ending prior 10,007
to the first day of the tax year the corporation's and the 10,008
corporation's related members' combined direct and indirect 10,009
interests in the capital or profits of such pass-through entity 10,010
do not exceed fifty per cent. If the corporation's interest in 10,011
the pass-through entity is an intangible asset for that taxable 10,012
year, then the distributive share of any income from the 10,013
pass-through entity shall be income from an intangible asset for 10,014
that taxable year.
(ii) If a corporation's and the corporation's related 10,017
members' combined direct and indirect interests in the capital or 10,018
profits of a pass-through entity exceed fifty per cent at any 10,019
time during the corporation's taxable year ending prior to the 10,020
first day of the tax year, "intangible asset" does not include 10,021
the corporation's direct interest in the pass-through entity, and 10,022
the corporation shall include in its assets its proportionate 10,023
share of the assets of any such pass-through entity and shall 10,024
include in its gross income its distributive share of the gross 10,025
income of such pass-through entity in the same form as was earned 10,026
by the pass-through entity. 10,027
(iii) A pass-through entity's direct or indirect 10,030
proportionate share of any other pass-through entity's assets 10,031
236
shall be included for the purpose of computing the corporation's 10,032
proportionate share of the pass-through entity's assets under 10,033
division (L)(2)(b)(ii) of this section, and such pass-through 10,035
entity's distributive share of any other pass-through entity's 10,036
gross income shall be included for purposes of computing the 10,037
corporation's distributive share of the pass-through entity's 10,038
gross income under division (L)(2)(b)(ii) of this section. 10,041
(c) For the purposes of divisions (L)(1)(b)(i), 10,044
(1)(b)(ii), (2)(a)(i), and (2)(a)(ii) of this section, real 10,047
property is described in division (L)(2)(c) of this section only 10,049
if all of the following conditions are present at all times 10,050
during the taxable year ending prior to the first day of the tax 10,051
year:
(i) The real property serves as the headquarters of the 10,054
corporation's trade or business, or is the place from which the 10,055
corporation's trade or business is principally managed or 10,056
directed;
(ii) Not more than ten per cent of the value of the real 10,059
property and not more than ten per cent of the square footage of 10,060
the building or buildings that are part of the real property is
used, made available, or occupied for the purpose of providing, 10,061
acquiring, transferring, selling, or disposing of tangible 10,063
property or services in the normal course of business to persons 10,064
other than related members, the corporation's employees and their 10,065
families, and such related members' employees and their families. 10,066
(d) As used in division (L) of this section, "related 10,068
member" has the same meaning as in division (A)(6) of section 10,071
5733.042 of the Revised Code without regard to division (B) of 10,074
that section.
(3) The percentages described in division (L)(1)(a) of 10,078
this section shall be equal to the quarterly average of those 10,079
percentages as calculated during the corporation's taxable year 10,080
ending prior to the first day of the tax year. 10,081
(4) With respect to the election described in division 10,083
237
(L)(1)(e) of this section: 10,085
(a) The election need not accompany a timely filed report; 10,088
(b) The election need not accompany the report; rather, 10,090
the election may accompany a subsequently filed but timely 10,091
application for refund and timely amended report, or a 10,093
subsequently filed but timely petition for reassessment; 10,094
(c) The election is not irrevocable; 10,097
(d) The election applies only to the tax year specified by 10,100
the corporation;
(e) The corporation's related members comply with division 10,102
(L)(1)(d) of this section. 10,103
Nothing in division (L)(4) of this section shall be 10,106
construed to extend any statute of limitations set forth in this 10,107
chapter. 10,108
(M) "Qualifying controlled group" means two or more 10,111
corporations that satisfy the ownership and control requirements 10,112
of division (A) of section 5733.052 of the Revised Code. 10,115
(N) "Limited liability company" means any limited 10,117
liability company formed under Chapter 1705. of the Revised Code 10,119
or under the laws of any other state.
(O) "Pass-through entity" means a corporation that has 10,122
made an election under subchapter S of Chapter 1 of Subtitle A of 10,124
the Internal Revenue Code for its taxable year under that code, 10,127
or a partnership, limited liability company, or any other person, 10,128
other than an individual, trust, or estate, if the partnership, 10,129
limited liability company, or other person is not classified for 10,130
federal income tax purposes as an association taxed as a 10,131
corporation. 10,132
(P) "ELECTRIC COMPANY" AND "COMBINED COMPANY" HAVE THE 10,134
SAME MEANINGS AS IN SECTION 5727.01 OF THE REVISED CODE. 10,136
Sec. 5733.05. As used in this section, "qualified 10,145
research" means laboratory research, experimental research, and 10,146
other similar types of research; research in developing or 10,147
improving a product; or research in developing or improving the 10,148
238
means of producing a product. It does not include market 10,149
research, consumer surveys, efficiency surveys, management 10,150
studies, ordinary testing or inspection of materials or products 10,151
for quality control, historical research, or literary research. 10,152
"Product" as used in this paragraph does not include services or 10,153
intangible property. 10,154
The annual report determines the value of the issued and 10,157
outstanding shares of stock of the taxpayer, which under division 10,158
(A) or divisions (B) and (C) of this section is the base or 10,159
measure of the franchise tax liability. Such determination shall 10,160
be made as of the date shown by the report to have been the 10,161
beginning of the corporation's annual accounting period that 10,162
includes the first day of January of the tax year. For the 10,163
purposes of this chapter, the value of the issued and outstanding 10,165
shares of stock of any corporation that is a financial 10,167
institution shall be deemed to be the value as calculated in 10,169
accordance with division (A) of this section. For the purposes 10,171
of this chapter, the value of the issued and outstanding shares 10,172
of stock of any corporation that is not a financial institution 10,173
shall be deemed to be the values as calculated in accordance with 10,174
divisions (B) and (C) of this section. 10,175
(A) The total value, as shown by the books of the 10,177
financial institution, of its capital, surplus, whether earned or 10,179
unearned, undivided profits, and reserves shall be determined as 10,181
prescribed by section 5733.056 of the Revised Code for tax years 10,182
1998 and thereafter. 10,183
(B) The sum of the corporation's net income during the 10,185
corporation's taxable year, allocated or apportioned to this 10,187
state as prescribed in divisions (B)(1) and (2) of this section, 10,189
and subject to sections 5733.052, 5733.053, 5733.057, and 10,190
5733.058, 5733.059, AND 5733.0510 of the Revised Code: 10,191
(1) The net income allocated to this state as provided by 10,193
section 5733.051 of the Revised Code. 10,194
(2) The amount of Ohio apportioned net income from sources 10,196
239
other than those allocated under section 5733.051 of the Revised 10,197
Code, which shall be determined by multiplying the corporation's 10,198
net income by a fraction. The numerator of the fraction is the 10,200
sum of the following products: the property factor multiplied by 10,203
twenty, the payroll factor multiplied by twenty, and the sales 10,204
factor multiplied by sixty. The denominator of the fraction is 10,206
one hundred, provided that the denominator shall be reduced by 10,208
twenty if the property factor has a denominator of zero, by 10,210
twenty if the payroll factor has a denominator of zero, and by 10,211
sixty if the sales factor has a denominator of zero.
The property, payroll, and sales factors shall be 10,213
determined as follows:
(a) The property factor is a fraction the numerator of 10,215
which is the average value of the corporation's real and tangible 10,216
personal property owned or rented, and used in the trade or 10,217
business in this state during the taxable year, and the 10,218
denominator of which is the average value of all the 10,219
corporation's real and tangible personal property owned or 10,220
rented, and used in the trade or business everywhere during such 10,221
year. There shall be excluded from the numerator and denominator 10,222
of the property factor the original cost of all of the following 10,223
property within Ohio: property with respect to which a 10,224
"pollution control facility" certificate has been issued pursuant 10,225
to section 5709.21 of the Revised Code; property with respect to 10,226
which an "industrial water pollution control certificate" has 10,227
been issued pursuant to section 6111.31 of the Revised Code; and 10,228
property used exclusively during the taxable year for qualified 10,229
research. 10,230
(i) Property owned by the corporation is valued at its 10,232
original cost. Property rented by the corporation is valued at 10,233
eight times the net annual rental rate. "Net annual rental rate" 10,234
means the annual rental rate paid by the corporation less any 10,235
annual rental rate received by the corporation from subrentals. 10,236
(ii) The average value of property shall be determined by 10,238
240
averaging the values at the beginning and the end of the taxable 10,239
year, but the tax commissioner may require the averaging of 10,240
monthly values during the taxable year, if reasonably required to 10,241
reflect properly the average value of the corporation's property. 10,242
(b) The payroll factor is a fraction the numerator of 10,244
which is the total amount paid in this state during the taxable 10,245
year by the corporation for compensation, and the denominator of 10,246
which is the total compensation paid everywhere by the 10,247
corporation during such year. There shall be excluded from the 10,248
numerator and the denominator of the payroll factor the total 10,249
compensation paid in this state to employees who are primarily 10,250
engaged in qualified research. 10,251
(i) Compensation means any form of remuneration paid to an 10,253
employee for personal services. 10,254
(ii) Compensation is paid in this state if: (1) the 10,256
recipient's service is performed entirely within this state, (2) 10,257
the recipient's service is performed both within and without this 10,258
state, but the service performed without this state is incidental 10,259
to the recipient's service within this state, (3) some of the 10,260
service is performed within this state and either the base of 10,261
operations, or if there is no base of operations, the place from 10,262
which the service is directed or controlled is within this state, 10,263
or the base of operations or the place from which the service is 10,264
directed or controlled is not in any state in which some part of 10,265
the service is performed, but the recipient's residence is in 10,266
this state. 10,267
(iii) Compensation is paid in this state to any employee 10,269
of a common or contract motor carrier corporation, who performs 10,270
the employee's regularly assigned duties on a motor vehicle in 10,272
more than one state, in the same ratio by which the mileage 10,273
traveled by such employee within the state bears to the total 10,274
mileage traveled by such employee everywhere during the taxable 10,275
year.
(c) The EXCEPT AS PROVIDED IN SECTION 5733.059 OF THE 10,278
241
REVISED CODE, THE sales factor is a fraction the numerator of 10,279
which is the total sales in this state by the corporation during 10,280
the taxable year, and the denominator of which is the total sales 10,281
by the corporation everywhere during such year. In determining 10,282
the numerator and denominator of the sales factor, receipts from 10,283
the sale or other disposal of a capital asset or an asset 10,284
described in section 1231 of the Internal Revenue Code shall be 10,285
eliminated. Also, in determining the numerator and denominator 10,286
of the sales factor, in the case of a reporting corporation 10,287
owning at least eighty per cent of the issued and outstanding 10,288
common stock of one or more public utilities or insurance 10,289
companies OR PUBLIC UTILITIES, EXCEPT AN ELECTRIC COMPANY, or 10,291
owning at least twenty-five per cent of the issued and 10,292
outstanding common stock of one or more financial institutions, 10,293
receipts received by the reporting corporation from such 10,294
utilities, insurance companies, and financial institutions shall 10,295
be eliminated.
For the purpose of this section and section 5733.03 of the 10,297
Revised Code, sales of tangible personal property are in this 10,298
state where such property is received in this state by the 10,299
purchaser. In the case of delivery of tangible personal property 10,300
by common carrier or by other means of transportation, the place 10,301
at which such property is ultimately received after all 10,302
transportation has been completed shall be considered as the 10,303
place at which such property is received by the purchaser. 10,304
Direct delivery in this state, other than for purposes of 10,305
transportation, to a person or firm designated by a purchaser 10,306
constitutes delivery to the purchaser in this state, and direct 10,307
delivery outside this state to a person or firm designated by a 10,308
purchaser does not constitute delivery to the purchaser in this 10,309
state, regardless of where title passes or other conditions of 10,310
sale. 10,311
Sales EXCEPT AS PROVIDED IN SECTION 5733.059 OF THE REVISED 10,313
CODE, SALES, other than sales of tangible personal property, are 10,314
242
in this state if either: 10,315
(i) The income-producing activity is performed solely in 10,317
this state; 10,318
(ii) The income-producing activity is performed both 10,320
within and without this state and a greater proportion of the 10,321
income-producing activity is performed within this state than in 10,323
any other state, based on costs of performance. 10,324
(d) If the allocation and apportionment provisions of 10,326
division (B) of this section do not fairly represent the extent 10,328
of the taxpayer's business activity in this state, the taxpayer 10,329
may request, which request must be in writing and must accompany 10,330
the report, timely filed petition for reassessment, or timely 10,331
filed amended report, or the tax commissioner may require, in 10,332
respect to all or any part of the taxpayer's allocated or 10,333
apportioned base, if reasonable, any one or more of the 10,334
following:
(i) Separate accounting; 10,336
(ii) The exclusion of any one or more of the factors; 10,338
(iii) The inclusion of one or more additional factors 10,340
which THAT will fairly represent the taxpayer's allocated or 10,341
apportioned base in this state. 10,342
An alternative method will be effective only with approval 10,344
by the tax commissioner. 10,345
Nothing in this section shall be construed to extend any 10,347
statute of limitations set forth in this chapter. 10,348
(C)(1) Subject to divisions (C)(2) and (3) of this 10,351
section, the total value, as shown on the books of each
corporation that is not a qualified holding company, of the net 10,352
book value of a corporation's assets less the net carrying value 10,354
of its liabilities. For the purposes of determining that total 10,355
value, any reserves shown on the corporation's books shall be 10,356
considered liabilities or contra assets, except for any reserves 10,357
that are deemed appropriations of retained earnings under 10,358
generally accepted accounting principles. 10,359
243
(2)(a) If, on the last day of the taxpayer's taxable year 10,362
preceding the tax year, the taxpayer is a related member to a 10,363
corporation that elects to be a qualifying holding company for 10,364
the tax year beginning after the last day of the taxpayer's 10,365
taxable year, or if, on the last day of the taxpayer's taxable 10,366
year preceding the tax year, a corporation that elects to be a 10,367
qualifying holding company for the tax year beginning after the 10,368
last day of the taxpayer's taxable year is a related member to 10,369
the taxpayer, then the taxpayer's total value shall be adjusted 10,370
by the qualifying amount. Except as otherwise provided under 10,371
division (C)(2)(b) of this section, "qualifying amount" means the 10,372
amount that, when added to the taxpayer's total value, and when 10,374
subtracted from the net carrying value of the taxpayer's 10,375
liabilities computed without regard to division (C)(2) of this 10,377
section, or when subtracted from the taxpayer's total value and 10,379
when added to the net carrying value of the taxpayer's 10,380
liabilities computed without regard to division (C)(2) of this 10,382
section, results in the taxpayer's debt-to-equity ratio equaling 10,383
the debt-to-equity ratio of the qualifying controlled group on 10,384
the last day of the taxable year ending prior to the first day of 10,385
the tax year computed on a consolidated basis in accordance with 10,387
general accepted accounting principles. For the purposes of 10,388
division (C)(2)(a) of this section, the corporation's total 10,389
value, after the adjustment required by that division, shall not 10,390
exceed the net book value of the corporation's assets. 10,391
(b)(i) The amount added to the taxpayer's total value and 10,394
subtracted from the net carrying value of the taxpayer's 10,395
liabilities shall not exceed the amount of the net carrying value 10,396
of the taxpayer's liabilities owed to the taxpayer's related 10,398
members.
(ii) A liability owed to the taxpayer's related members 10,400
includes, but is not limited to, any amount that the corporation 10,402
owes to a person that is not a related member if the 10,403
corporation's related member or related members in whole or in 10,404
244
part guarantee any portion or all of that amount, or pledge, 10,405
hypothecate, mortgage, or carry out any similar transactions to 10,406
secure any portion or all of that amount. 10,407
(3) The base upon which the tax is levied under division 10,409
(C) of section 5733.06 of the Revised Code shall be computed by 10,411
multiplying the amount determined under divisions (C)(1) and (2) 10,413
of this section by the fraction determined under divisions 10,414
(B)(2)(a) to (c) of this section and, if applicable, divisions 10,417
(B)(2)(d)(ii) to (iv) of this section but without regard to 10,419
section 5733.052 of the Revised Code. 10,420
(4) For purposes of division (C) of this section, "related 10,424
member" has the same meaning as in division (A)(6) of section 10,425
5733.042 of the Revised Code without regard to division (B) of 10,426
that section.
Sec. 5733.051. Net SUBJECT TO SECTION 5733.0510 OF THE 10,435
REVISED CODE, NET income of a corporation subject to the tax 10,437
imposed by section 5733.06 of the Revised Code shall be allocated 10,438
and apportioned to this state as follows:
(A) Net rents and royalties from real property located in 10,440
this state are allocable to this state; 10,441
(B) Net rents and royalties from tangible personal 10,443
property, to the extent such property is utilized in this state, 10,444
are allocable to this state if the taxpayer is otherwise subject 10,445
to the tax imposed by section 5733.06 of the Revised Code; 10,447
(C) Capital gains and losses from the sale or other 10,449
disposition of real property located in this state are allocable 10,450
to this state; 10,451
(D) Capital gains and losses from the sale or other 10,453
disposition of tangible personal property are allocable to this 10,454
state if the property had a situs in this state at the time of 10,455
sale and the taxpayer is otherwise subject to the tax imposed by 10,456
section 5733.06 of the Revised Code; 10,457
(E) Capital gains and losses from the sale or other 10,459
disposition of intangible property which may produce income 10,460
245
enumerated in division (F) of this section are allocable on the 10,461
same basis as set forth in such division. Capital gains and 10,462
losses from the sale or other disposition of all other intangible 10,463
property are apportionable under division (H) of this section. 10,464
(F) Dividends or distributions which are not otherwise 10,466
deducted or excluded from net income, other than dividends or 10,467
distributions from a domestic international sales corporation, 10,468
are allocable to this state in accordance with the ratio of the 10,469
book value of the physical assets of the payor of the dividends 10,470
or distributions located in this state divided by the book value 10,471
of the total physical assets of the payor located everywhere. 10,472
Dividends or distributions received from a domestic international 10,473
sales corporation, or from a payor the location of whose physical 10,474
assets is unavailable to the taxpayer, are apportionable under 10,475
division (H) of this section. 10,476
(G) Patent and copyright royalties and technical 10,478
assistance fees, not representing the principal source of gross 10,479
receipts of the taxpayer, are allocable to this state to the 10,480
extent that the activity of the payor thereof giving rise to the 10,481
payment takes place in this state. If the location of the 10,482
payor's activity is unavailable to the taxpayer, such royalties 10,483
and fees are apportionable under division (H) of this section. 10,484
(H) Any other net income, from sources other than those 10,486
enumerated in divisions (A) to (G) of this section, is 10,487
apportionable to this state on the basis of the mechanism 10,488
provided in division (B)(2) of section 5733.05 of the Revised 10,489
Code. 10,490
Sec. 5733.057. As used in this section, "adjusted 10,499
qualifying amount" has the same meaning as in section 5733.40 of 10,500
the Revised Code.
Except as otherwise provided in divisions (A) and (B) of 10,502
section 5733.401 and in sections 5733.058 and 5747.401 of the 10,503
Revised Code, in making any computation ALL APPORTIONMENT, 10,505
ALLOCATION, INCOME, GAIN, LOSS, DEDUCTION, TAX, AND CREDIT 10,506
246
COMPUTATIONS under THIS CHAPTER AND UNDER sections 5733.042, 10,507
5733.05, 5733.051, 5733.052, 5733.053, 5733.40, 5733.41, 5747.41, 10,509
and 5747.43 of the Revised Code, each person shall include in 10,511
that person's items of adjusted qualifying amounts, allocable 10,512
income or loss, if any, apportionable income or loss, property, 10,514
compensation, and sales, the person's entire distributive share 10,515
or proportionate share of the items of adjusted qualifying 10,517
amounts, allocable income or loss, apportionable income or loss, 10,518
property, compensation, and sales of any pass-through entity in 10,519
which the person has a direct or indirect ownership interest at 10,521
any time during the person's taxable year. A pass-through 10,522
entity's direct or indirect distributive share or proportionate 10,523
share of any other pass-through entity's items of adjusted 10,524
qualifying amounts, allocable income or loss, apportionable 10,526
income or loss, property, compensation, and sales shall be 10,527
included for the purposes of computing the person's distributive 10,528
share or proportionate share of the pass-through entity's items 10,530
of adjusted qualifying amounts, allocable income or loss, 10,531
apportionable income or loss, property, compensation, and sales 10,532
under this section. Those items shall be in the same form as was 10,533
recognized by the pass-through entity. 10,534
Sec. 5733.059. (A) AS USED IN THIS SECTION: 10,536
(1) "CUSTOMER" MEANS A PERSON WHO PURCHASES ELECTRICITY 10,538
FOR CONSUMPTION EITHER BY THAT PERSON OR BY THE PERSON'S RELATED 10,539
MEMBER AND THE ELECTRICITY IS NOT FOR RESALE DIRECTLY OR 10,540
INDIRECTLY TO ANY PERSON OTHER THAN A RELATED MEMBER. 10,541
(2) "RELATED MEMBER" HAS THE SAME MEANING AS IN DIVISION 10,543
(A)(6) OF SECTION 5733.042 OF THE REVISED CODE WITHOUT REGARD TO 10,544
DIVISION (B) OF THAT SECTION. 10,546
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 10,548
THIS DIVISION APPLIES ONLY TO SALES OF ELECTRIC TRANSMISSION AND 10,549
DISTRIBUTION SERVICES. FOR PURPOSES OF SECTIONS 5733.05 AND 10,550
5747.21 OF THE REVISED CODE: 10,551
(1) SALES OF THE TRANSMISSION OF ELECTRICITY ARE IN THIS 10,553
247
STATE IN PROPORTION TO THE RATIO OF THE WIRE MILEAGE OF THE 10,554
TAXPAYER'S TRANSMISSION LINES LOCATED IN THIS STATE DIVIDED BY 10,555
THE WIRE MILEAGE OF THE TAXPAYER'S TRANSMISSION LINES LOCATED 10,556
EVERYWHERE. TRANSMISSION WIRE MILEAGE SHALL BE WEIGHTED FOR THE 10,557
VOLTAGE CAPACITY OF EACH LINE. 10,558
(2) SALES OF THE DISTRIBUTION OF ELECTRICITY ARE IN THIS 10,560
STATE IN PROPORTION TO THE RATIO OF THE WIRE MILEAGE OF THE 10,561
TAXPAYER'S DISTRIBUTION LINES LOCATED IN THIS STATE DIVIDED BY 10,562
THE WIRE MILEAGE OF THE TAXPAYER'S DISTRIBUTION LINES LOCATED 10,563
EVERYWHERE. DISTRIBUTION WIRE MILEAGE SHALL NOT BE WEIGHTED FOR 10,564
THE VOLTAGE CAPACITY OF EACH LINE. 10,565
(C) THIS DIVISION APPLIES ONLY TO A PERSON THAT HAS 10,567
TRANSMISSION OR DISTRIBUTION LINES IN THIS STATE. IF A CONTRACT 10,568
FOR THE SALE OF ELECTRICITY INCLUDES THE SELLER'S OR THE SELLER'S
RELATED MEMBER'S OBLIGATION TO TRANSMIT OR DISTRIBUTE THE 10,569
ELECTRICITY AND IF THE SALES CONTRACT SEPARATELY IDENTIFIES THE 10,570
PRICE CHARGED FOR THE TRANSMISSION OR DISTRIBUTION OF 10,571
ELECTRICITY, THE PRICE CHARGED FOR THE TRANSMISSION AND 10,572
DISTRIBUTION OF ELECTRICITY SHALL BE APPORTIONED TO THIS STATE IN 10,573
ACCORDANCE WITH DIVISION (B) OF THIS SECTION. ANY REMAINING 10,574
PORTION OF THE SALES PRICE OF THE ELECTRICITY SHALL BE SITUSED TO
THIS STATE IN ACCORDANCE WITH DIVISION (D) OF THIS SECTION. 10,575
IF THE SALES CONTRACT DOES NOT SEPARATELY IDENTIFY THE 10,577
PRICE CHARGED FOR THE TRANSMISSION OR DISTRIBUTION OF 10,578
ELECTRICITY, THE SALES PRICE OF THE ELECTRICITY SHALL BE SITUSED 10,579
TO THIS STATE IN ACCORDANCE WITH DIVISION (D) OF THIS SECTION. 10,580
(D) ANY PERSON WHO MAKES A SALE OF ELECTRICITY SHALL SITUS 10,582
THE FOLLOWING TO THIS STATE: 10,583
(1) A SALE OF ELECTRICITY DIRECTLY OR INDIRECTLY TO A 10,585
CUSTOMER TO THE EXTENT THE CUSTOMER CONSUMES THE ELECTRICITY IN 10,586
THIS STATE;
(2) A SALE OF ELECTRICITY DIRECTLY OR INDIRECTLY TO A 10,588
RELATED MEMBER WHERE THE RELATED MEMBER DIRECTLY OR INDIRECTLY 10,589
SELLS ELECTRICITY TO A CUSTOMER TO THE EXTENT THE CUSTOMER 10,590
248
CONSUMES THE ELECTRICITY IN THIS STATE; 10,591
(3) A SALE OF ELECTRICITY IF THE SELLER OR THE SELLER'S 10,593
RELATED MEMBER DIRECTLY OR INDIRECTLY DELIVERS THE ELECTRICITY TO 10,594
A LOCATION IN THIS STATE OR DIRECTLY OR INDIRECTLY DELIVERS THE 10,595
ELECTRICITY EXACTLY TO THE BORDER OF THIS STATE AND ANOTHER 10,596
STATE;
(4) A SALE OF ELECTRICITY IF THE SELLER OR THE SELLER'S 10,598
RELATED MEMBER DIRECTLY OR INDIRECTLY DIRECTS THE DELIVERY OF THE 10,599
ELECTRICITY TO A LOCATION IN THIS STATE OR DIRECTLY OR INDIRECTLY 10,600
DIRECTS THE DELIVERY OF THE ELECTRICITY EXACTLY TO THE BORDER OF 10,601
THIS STATE AND ANOTHER STATE. 10,602
(E) IF THE SITUSING PROVISIONS OF THIS SECTION DO NOT 10,604
FAIRLY REPRESENT THE EXTENT OF THE TAXPAYER'S OR THE TAXPAYER'S 10,605
RELATED MEMBER'S ACTIVITY IN THIS STATE, THE TAXPAYER MAY 10,606
REQUEST, OR THE TAX COMMISSIONER MAY REQUIRE, IN RESPECT TO ALL 10,607
OR PART OF A TAXPAYER'S OR RELATED MEMBER'S SALES, IF REASONABLE, 10,608
ANY OF THE FOLLOWING: 10,609
(1) SEPARATE ACCOUNTING; 10,611
(2) THE EXCLUSION OF ONE OR MORE ADDITIONAL SITUSING 10,613
FACTORS THAT WILL FAIRLY REPRESENT THE TAXPAYER'S AND THE RELATED 10,614
MEMBER'S SALES IN THIS STATE; 10,615
(3) THE INCLUSION OF ONE OR MORE ADDITIONAL SITUSING 10,617
FACTORS THAT WILL FAIRLY REPRESENT THE TAXPAYER'S AND THE RELATED 10,618
MEMBER'S SALES IN THIS STATE. 10,619
THE TAXPAYER'S REQUEST SHALL BE IN WRITING AND SHALL BE 10,621
FILED WITH THE REPORT REQUIRED BY SECTION 5733.02 OF THE REVISED 10,622
CODE, A TIMELY FILED PETITION FOR REASSESSMENT, OR A TIMELY FILED 10,623
AMENDED REPORT. AN ALTERNATIVE SITUSING METHOD SHALL BE
EFFECTIVE WITH THE APPROVAL OF THE TAX COMMISSIONER. 10,624
NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXTEND ANY 10,626
STATUTE OF LIMITATIONS SET FORTH IN THIS CHAPTER. 10,627
(F) IF THE SITUSING PROVISIONS OF THIS SECTION DO NOT 10,629
FAIRLY REPRESENT ACTIVITY IN THIS STATE, THE TAX COMMISSIONER MAY 10,630
PROMULGATE RULES TO SITUS SALES USING A METHODOLOGY THAT FAIRLY 10,631
249
REFLECTS SALES IN THIS STATE. 10,632
(G) NOTWITHSTANDING SECTIONS 5733.111 AND 5747.131 OF THE 10,634
REVISED CODE TO THE CONTRARY, A PERSON SITUSING A SALE OUTSIDE 10,635
THIS STATE HAS THE BURDEN TO ESTABLISH BY A PREPONDERANCE OF THE 10,636
EVIDENCE THAT THE DOCTRINES ENUMERATED IN THOSE SECTIONS DO NOT 10,637
APPLY.
Sec. 5733.0510. (A) AS USED IN THIS SECTION: 10,639
(1) "QUALIFYING TAXPAYER" MEANS EITHER OF THE FOLLOWING: 10,641
(a) A PERSON THAT IS AN ELECTRIC COMPANY OR A COMBINED 10,643
COMPANY, BUT ONLY IF THE PERSON WAS SUBJECT TO AND PAID THE TAX 10,645
IMPOSED BY SECTION 5727.30 OF THE REVISED CODE FOR GROSS RECEIPTS 10,646
RECEIVED DURING THE PERIOD OF MAY 1, 2000, THROUGH APRIL 30, 10,647
2001; 10,648
(b) ANY TAXPAYER NOT DESCRIBED IN DIVISION (A)(1)(a) OF 10,651
THIS SECTION IF A PERSON DESCRIBED IN DIVISION (A)(1)(a) OF THIS 10,653
SECTION TRANSFERS ALL OR A PORTION OF ITS ASSETS OR EQUITY 10,654
DIRECTLY OR INDIRECTLY TO THE TAXPAYER, THE TRANSFER OCCURRED AS 10,656
PART OF AN ENTITY ORGANIZATION OR REORGANIZATION, OR SUBSEQUENT
ENTITY ORGANIZATION OR REORGANIZATION, AND THE GAIN OR LOSS WITH 10,658
RESPECT TO THE TRANSFER IS NOT RECOGNIZED IN WHOLE OR IN PART FOR 10,659
FEDERAL INCOME TAX PURPOSES UNDER THE INTERNAL REVENUE CODE ON 10,660
ACCOUNT OF A TRANSFER AS PART OF AN EQUITY ORGANIZATION OR 10,661
REORGANIZATION, OR SUBSEQUENT ORGANIZATION OR REORGANIZATION. 10,662
(2) "QUALIFYING TAXABLE EVENT" MEANS ANY EVENT RESULTING 10,664
IN THE RECOGNITION FOR FEDERAL INCOME TAX PURPOSES OF GAIN OR 10,665
LOSS IN CONNECTION WITH ANY DIRECT OR INDIRECT SALE, DIRECT OR 10,666
INDIRECT EXCHANGE, DIRECT OR INDIRECT TRANSFER, OR DIRECT OR 10,667
INDIRECT RETIREMENT OF ANY QUALIFYING ASSET. 10,669
(3) "QUALIFYING ASSET" MEANS ANY ASSET SHOWN ON THE 10,671
QUALIFYING TAXPAYER'S BOOKS AND RECORDS ON DECEMBER 31, 2000, IN 10,672
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, 10,673
INCLUDING THE COST OF, OR ANY PORTION OF THE COST OF, ANY ASSET 10,674
ACQUIRED AFTER DECEMBER 31, 2000, WHERE SUCH ASSET WAS ACQUIRED 10,675
AS A RESULT OF A TAX-FREE OR TAX-DEFERRED EXCHANGE OF A 10,676
250
QUALIFYING ASSET.
(4) "NET INCOME" HAS THE SAME MEANING AS IN DIVISION (I) 10,678
OF SECTION 5733.04 OF THE REVISED CODE. 10,679
(5) "BOOK-TAX DIFFERENTIAL" MEANS THE DIFFERENCE, IF ANY, 10,681
BETWEEN AN ASSET'S NET BOOK VALUE SHOWN ON THE QUALIFYING 10,682
TAXPAYER'S BOOKS AND RECORDS ON DECEMBER 31, 2000, IN ACCORDANCE 10,683
WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, AND SUCH ASSET'S 10,684
ADJUSTED BASIS ON DECEMBER 31, 2000. THE BOOK-TAX DIFFERENTIAL 10,685
MAY BE A NEGATIVE NUMBER. 10,686
(6) "QUALIFYING REGULATORY ASSET" MEANS THOSE QUALIFYING 10,688
ASSETS THAT, AS OF DECEMBER 31, 2000, ARE NO LONGER INCLUDED IN 10,689
FEDERAL ENERGY REGULATORY COMMISSION UNIFORM SYSTEM OF ACCOUNTS 10,690
101 THROUGH 106 OR ARE DEFERRED EXPENSES FOR OPERATION OR 10,691
MAINTENANCE, OR DEFERRED COSTS ASSOCIATED WITH LEASEBACK 10,692
TRANSACTIONS ON GENERATING UNITS, THAT HAVE BEEN AUTHORIZED BY A 10,693
REGULATORY AGENCY FOR RECOVERY FROM CUSTOMERS IN A FUTURE PERIOD 10,694
AND THAT, AS OF DECEMBER 31, 2000, ARE SUBJECT TO TRANSITION COST 10,695
RECOVERY UNDER CHAPTER 4928. OF THE REVISED CODE OR SIMILAR LAWS 10,697
OF ANOTHER STATE. 10,698
(B)(1) IF, WITH RESPECT TO A QUALIFYING ASSET, THERE 10,700
OCCURS A QUALIFYING TAXABLE EVENT AND IF THE GAIN OR LOSS 10,702
RECOGNIZED IS A TYPE OF GAIN OR LOSS THAT IS APPORTIONED AS 10,703
PROVIDED IN DIVISION (B) OF SECTION 5733.05 OF THE REVISED CODE, 10,705
THE QUALIFYING TAXPAYER SHALL REDUCE ITS NET INCOME BY THE AMOUNT 10,706
OF THE BOOK-TAX DIFFERENTIAL FOR THAT QUALIFYING ASSET, IF THE 10,707
BOOK-TAX DIFFERENTIAL IS POSITIVE, AND THE QUALIFYING TAXPAYER 10,708
SHALL INCREASE ITS NET INCOME BY THE ABSOLUTE VALUE OF THE AMOUNT 10,709
OF THE BOOK-TAX DIFFERENTIAL FOR THAT QUALIFYING ASSET, IF THE 10,710
BOOK-TAX DIFFERENTIAL IS NEGATIVE. 10,711
(2) IF, WITH RESPECT TO A QUALIFYING ASSET, THERE OCCURS A 10,713
QUALIFYING TAXABLE EVENT AND IF THE GAIN OR LOSS RECOGNIZED IS A 10,714
TYPE OF GAIN OR LOSS THAT IS ALLOCATED TO THIS STATE AS PROVIDED 10,715
IN SECTION 5733.051 OF THE REVISED CODE, THE QUALIFYING TAXPAYER 10,716
SHALL REDUCE ITS INCOME ALLOCATED TO THIS STATE BY THE AMOUNT OF 10,717
251
THE BOOK-TAX DIFFERENTIAL FOR THAT QUALIFYING ASSET, IF THE
BOOK-TAX DIFFERENTIAL IS POSITIVE, AND THE QUALIFYING TAXPAYER 10,718
SHALL INCREASE ITS INCOME ALLOCATED TO THIS STATE BY THE ABSOLUTE 10,719
VALUE OF THE AMOUNT OF THE BOOK-TAX DIFFERENTIAL FOR THAT 10,720
QUALIFYING ASSET, IF THE BOOK-TAX DIFFERENTIAL IS NEGATIVE. 10,721
(3) IF, WITH RESPECT TO A QUALIFYING TAXABLE EVENT, THE 10,723
PERSON USES THE INSTALLMENT SALES METHOD TO RECOGNIZE GAIN OVER 10,724
MORE THAN ONE YEAR, THE ADJUSTMENTS REQUIRED BY DIVISIONS (B)(1) 10,725
AND (2) OF THIS SECTION SHALL NOT BE MADE ENTIRELY IN THE TAX 10,727
YEAR IMMEDIATELY FOLLOWING THE TAXABLE YEAR IN WHICH THE 10,728
QUALIFYING TAXABLE EVENT OCCURRED BUT SHALL BE MADE IN PART IN 10,729
SUCH TAX YEAR AND IN SUBSEQUENT TAX YEARS IN PROPORTION TO THE 10,730
GAIN RECOGNIZED FOR FEDERAL INCOME TAX PURPOSES IN EACH 10,731
CORRESPONDING TAXABLE YEAR.
(4) IF THE RECOGNIZED GAIN OR LOSS TO WHICH DIVISIONS 10,733
(B)(1) AND (2) OF THIS SECTION REFER IS ZERO SOLELY BECAUSE AT 10,734
THE TIME OF THE QUALIFYING TAXABLE EVENT THE AMOUNT REALIZED BY 10,735
THE QUALIFYING TAXPAYER WITH RESPECT TO THAT EVENT EQUALS THE 10,736
QUALIFYING ASSET'S ADJUSTED BASIS, THEN SOLELY FOR THE PURPOSES 10,737
OF DIVISION (B) OF THIS SECTION, THE AMOUNT REALIZED SHALL BE 10,738
DEEMED TO BE ONE DOLLAR GREATER THAN THE QUALIFYING ASSET'S 10,739
ADJUSTED BASIS. 10,740
(5) WHENEVER THERE IS A QUALIFYING TAXABLE EVENT, ALL 10,742
QUALIFYING REGULATORY ASSETS DIRECTLY OR INDIRECTLY ASSOCIATED 10,743
WITH A QUALIFYING ASSET IN CONNECTION WITH THAT EVENT SHALL BE 10,744
CONSIDERED TO HAVE BEEN DISPOSED OF AS PART OF THE EVENT FOR AN 10,745
AMOUNT REALIZED OF ONE DOLLAR. 10,746
(C) NOTHING IN DIVISION (B) OF THIS SECTION SHALL BE 10,748
CONSTRUED TO ALLOW FOR AN ADJUSTMENT MORE THAN ONCE WITH RESPECT 10,750
TO THE SAME QUALIFYING ASSET. 10,751
(D) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO ALLOW 10,753
MORE THAN ONE CORPORATION TO CLAIM AN ADJUSTMENT WITH RESPECT TO 10,754
THE SAME QUALIFYING ASSET. 10,755
Sec. 5733.06. The tax hereby charged each corporation 10,764
252
subject to this chapter shall be the GREATER OF THE sum of 10,765
divisions (A) and (B) of this section, AFTER THE REDUCTION, IF 10,766
ANY, PROVIDED BY DIVISION (J) OF THIS SECTION, or division (C) of 10,768
this section, whichever is greater AFTER THE REDUCTION, IF ANY, 10,769
PROVIDED BY DIVISION (J) OF THIS SECTION, except that the tax 10,771
hereby charged each financial institution subject to this chapter 10,772
shall be the amount computed under division (D) of this section: 10,773
(A) Except as set forth in division (F) of this section, 10,775
five and one-tenth per cent upon the first fifty thousand dollars 10,776
of the value of the taxpayer's issued and outstanding shares of 10,777
stock as determined under division (B) of section 5733.05 of the 10,778
Revised Code; 10,779
(B) Except as set forth in division (F) of this section, 10,781
eight and one-half per cent upon the value so determined in 10,783
excess of fifty thousand dollars; or 10,784
(C) Except as otherwise provided under division (G) of 10,787
this section, four mills times that portion of the value of the 10,788
issued and outstanding shares of stock as determined under
division (C) of section 5733.05 of the Revised Code. For the 10,789
purposes of division (C) of this section, division (C)(2) of 10,791
section 5733.065, and division (C) of section 5733.066 of the
Revised Code, the value of the issued and outstanding shares of 10,792
stock of a qualified holding company is zero. 10,793
(D) The tax charged each financial institution subject to 10,795
this chapter shall be that portion of the value of the issued and 10,796
outstanding shares of stock as determined under division (A) of 10,797
section 5733.05 of the Revised Code, multiplied by the following 10,799
amounts:
(1) For tax years prior to the 1999 tax year, fifteen 10,801
mills; 10,802
(2) For the 1999 tax year, fourteen mills; 10,804
(3) For tax year 2000 and thereafter, thirteen mills. 10,806
(E) No tax shall be charged from any corporation which 10,808
THAT has been adjudicated bankrupt, or for which a receiver has 10,809
253
been appointed, or which THAT has made a general assignment for 10,810
the benefit of creditors, except for the portion of the then 10,812
current tax year during which the tax commissioner finds such 10,813
corporation had the power to exercise its corporate franchise 10,814
unimpaired by such proceedings or act. The minimum payment for 10,815
all corporations shall be fifty dollars. 10,816
The tax charged to corporations under this chapter for the 10,818
privilege of engaging in business in this state, which is an 10,819
excise tax levied on the value of the issued and outstanding 10,820
shares of stock, shall in no manner be construed as prohibiting 10,821
or otherwise limiting the powers of municipal corporations, joint 10,822
economic development zones created under section 715.691 of the 10,823
Revised Code, and joint economic development districts created 10,824
under section 715.70 or 715.71 or sections 715.72 to 715.81 of 10,825
the Revised Code in this state to impose an income tax on the 10,826
income of such corporations.
(F) If two or more taxpayers satisfy the ownership or 10,828
control requirements of division (A) of section 5733.052 of the 10,829
Revised Code, each such taxpayer shall substitute "the taxpayer's 10,830
pro-rata amount" for "fifty thousand dollars" in divisions (A) 10,831
and (B) of this section. For purposes of this division, "the
taxpayer's pro-rata amount" is an amount that, when added to the 10,832
other such taxpayers' pro-rata amounts, does not exceed fifty 10,833
thousand dollars. For the purpose of making that computation, 10,834
the taxpayer's pro-rata amount shall not be less than zero. 10,835
Nothing in this division derogates from or eliminates the
requirement to make the alternative computation of tax under 10,836
division (C) of this section. 10,837
(G) The tax liability of any corporation under division 10,839
(C) of this section shall not exceed one hundred fifty thousand 10,840
dollars.
(H)(1) For the purposes of division (H) of this section, 10,842
"exiting corporation" means a corporation that satisfies all of 10,843
the following conditions: 10,844
254
(a) The corporation had nexus with or in this state under 10,846
the Constitution of the United States during any portion of a 10,847
calendar year;
(b) The corporation was not a taxpayer on the first day of 10,849
January immediately following that calendar year; 10,850
(c) The corporation was not a financial institution on the 10,852
first day of January immediately following that calendar year; 10,853
(d) The corporation was not a transferor as defined in 10,855
section 5733.053 of the Revised Code during any portion of that 10,856
calendar year;
(e) During any portion of that calendar year, or any 10,858
portion of the immediately preceding calendar year, the 10,859
corporation had net income that was not included in a report 10,860
filed pursuant to section 5733.02, 5733.021, 5733.03, or 5733.031 10,861
of the Revised Code;
(f) The corporation would have been subject to the tax 10,863
computed under divisions (A), (B), (C), (F), and (G) of this 10,864
section if the corporation is assumed to have had nexus with or 10,865
in this state under the Constitution of the United States on the 10,866
first day of January immediately following the calendar year 10,867
referred to in division (H)(1)(a) of this section.
(2) For the purposes of division (H) of this section, 10,869
"unreported net income" means net income that was not previously 10,870
included in a report filed pursuant to section 5733.02, 5733.021, 10,871
5733.03, or 5733.031 of the Revised Code and that was realized or 10,872
recognized during the calendar year referred to in division 10,873
(H)(1) of this section or the immediately preceding calendar
year.
(3) Each exiting corporation shall pay a tax computed by 10,875
first allocating and apportioning the unreported net income 10,876
pursuant to division (B) of section 5733.05 and sections SECTION 10,877
5733.051 and, if applicable, section 5733.052 of the Revised 10,879
Code. The exiting corporation then shall compute the tax due on
its unreported net income allocated and apportioned to this state 10,880
255
by applying divisions (A), (B), and (F) of this section to that 10,881
income.
(4) Divisions (C) and (G) of this section, division (D)(2) 10,883
of section 5733.065, and division (C) of section 5733.066 of the 10,884
Revised Code do not apply to an exiting corporation, but exiting 10,885
corporations are subject to every other provision of this 10,886
chapter.
(5) Notwithstanding sections 5733.02, 5733.021, and 10,888
5733.03 of the Revised Code to the contrary, each exiting 10,889
corporation shall report and pay the tax due under division (H) 10,890
of this section on or before the thirty-first day of May 10,891
immediately following the calendar year referred to in division 10,892
(H)(1)(a) of this section. The exiting corporation shall file
that report on the form most recently prescribed by the tax 10,893
commissioner for the purposes of complying with sections 5733.02 10,894
and 5733.03 of the Revised Code. Upon request by the 10,895
corporation, the tax commissioner may extend the date for filing 10,896
the report.
(6) The tax commissioner may adopt rules governing 10,898
division (H) of this section. 10,899
(I) Any reference in the Revised Code to "the tax imposed 10,901
by section 5733.06 of the Revised Code" or "the tax due under 10,902
section 5733.06 of the Revised Code" includes the taxes imposed 10,903
under sections 5733.065 and 5733.066 of the Revised Code. 10,904
(J)(1) DIVISION (J) OF THIS SECTION APPLIES SOLELY TO A 10,907
COMBINED COMPANY. SECTION 5733.057 OF THE REVISED CODE SHALL 10,908
APPLY WHEN CALCULATING THE ADJUSTMENTS REQUIRED BY DIVISION (J) 10,910
OF THIS SECTION. 10,911
(2) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 10,915
TAX CALCULATED IN DIVISIONS (A) AND (B) OF THIS SECTION SHALL BE 10,916
REDUCED BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY A 10,918
FRACTION, THE NUMERATOR OF WHICH IS THE TOTAL TAXABLE GROSS 10,919
RECEIPTS ATTRIBUTED TO PROVIDING PUBLIC UTILITY ACTIVITY OTHER 10,920
THAN AS AN ELECTRIC COMPANY UNDER SECTION 5727.03 OF THE REVISED 10,921
256
CODE FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE 10,922
MEASURED IMMEDIATELY PRECEDING THE TAX YEAR, AND THE DENOMINATOR
OF WHICH IS THE TOTAL GROSS RECEIPTS FROM ALL SOURCES FOR THE 10,923
YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 10,924
IMMEDIATELY PRECEDING THE TAX YEAR. NOTHING HEREIN SHALL BE 10,925
CONSTRUED TO EXCLUDE FROM THE DENOMINATOR ANY ITEM OF INCOME 10,926
DESCRIBED IN SECTION 5733.051 OF THE REVISED CODE. 10,929
(3) SUBJECT TO DIVISION (J)(4) OF THIS SECTION, THE TOTAL 10,933
TAX CALCULATED IN DIVISION (C) OF THIS SECTION SHALL BE REDUCED 10,935
BY AN AMOUNT CALCULATED BY MULTIPLYING SUCH TAX BY THE FRACTION 10,936
DESCRIBED IN DIVISION (J)(2) OF THIS SECTION. 10,938
(4) IN NO EVENT SHALL THE REDUCTION PROVIDED BY DIVISION 10,942
(J)(2) OR (J)(3) OF THIS SECTION EXCEED THE AMOUNT OF THE EXCISE 10,945
TAX PAID IN ACCORDANCE WITH SECTION 5727.38 OF THE REVISED CODE, 10,948
FOR THE YEAR UPON WHICH THE TAXABLE GROSS RECEIPTS ARE MEASURED 10,949
IMMEDIATELY PRECEDING THE TAX YEAR. 10,950
Sec. 5733.09. (A) An incorporated company, whether 10,959
foreign or domestic, owning and operating a public utility in 10,960
this state, and as such required by law to file reports with the 10,961
tax commissioner and to pay an excise tax upon its gross 10,962
receipts, and insurance, fraternal, beneficial, bond investment, 10,963
and other corporations required by law to file annual reports 10,964
with the superintendent of insurance and dealers in intangibles, 10,965
the shares of which ARE, or the capital or ownership in capital 10,966
employed by such dealer is, subject to the taxes imposed by 10,967
section 5707.03 of the Revised Code, shall not be subject to this 10,968
chapter, except for sections 5733.031, 5733.042, 5733.05, 10,969
5733.052, 5733.053, 5733.069, 5733.0611, 5733.40, 5733.41, and 10,970
sections 5747.40 to 5747.453 of the Revised Code. AN ELECTRIC 10,971
COMPANY SUBJECT TO THE FILING REQUIREMENTS OF SECTION 5727.08 OF 10,972
THE REVISED CODE OR OTHERWISE HAVING NEXUS WITH OR IN THIS STATE 10,974
UNDER THE CONSTITUTION OF THE UNITED STATES, OR ANY OTHER 10,979
CORPORATION HAVING ANY GROSS RECEIPTS DIRECTLY ATTRIBUTABLE TO 10,980
PROVIDING PUBLIC UTILITY SERVICE AS AN ELECTRIC COMPANY OR HAVING 10,981
257
ANY PROPERTY DIRECTLY ATTRIBUTABLE TO PROVIDING PUBLIC UTILITY 10,982
SERVICE AS AN ELECTRIC COMPANY, IS SUBJECT TO THIS CHAPTER. 10,983
(B) A corporation that has made an election under 10,985
subchapter S, chapter one, subtitle A, of the Internal Revenue 10,986
Code for its taxable year under such code is exempt from the tax 10,987
imposed by section 5733.06 of the Revised Code that is based on 10,988
that taxable year. 10,989
A corporation that makes such an election shall file a 10,991
notice of such election with the tax commissioner between the 10,992
first day of January and the thirty-first day of March of each 10,993
tax year that the election is in effect. 10,994
(C) An entity defined to be a "real estate investment 10,996
trust" by section 856 of the Internal Revenue Code, a "regulated 10,997
investment company" by section 851 of the Internal Revenue Code, 10,998
or a "real estate mortgage investment conduit" by section 860D of 10,999
the Internal Revenue Code, is exempt from taxation for a tax year 11,000
as a corporation under this chapter and is exempt from taxation 11,001
for a return year as a dealer in intangibles under Chapter 5725. 11,002
of the Revised Code if it provides the report required by this 11,003
division. By the last day of March of the tax or return year the 11,004
entity shall submit to the tax commissioner the name of the 11,005
entity with a list of the names, addresses, and social security 11,006
or federal identification numbers of all investors, shareholders, 11,007
and other similar investors who owned any interest or invested in 11,008
the entity during the preceding calendar year. The commissioner 11,009
may extend the date by which the report must be submitted for 11,010
reasonable cause shown by the entity. The commissioner may 11,011
prescribe the form of the report required for exemption under 11,012
this division. 11,013
(D)(1) As used in this division: 11,015
(a) "Commercial printer" means a person primarily engaged 11,018
in the business of commercial printing. However, "commercial 11,019
printer" does not include a person primarily engaged in the 11,020
business of providing duplicating services using photocopy 11,021
258
machines or other xerographic processes. 11,022
(b) "Commercial printing" means printing by one or more 11,025
common processes such as letterpress, lithography, gravure, 11,026
screen, or digital imaging, and includes related activities such 11,027
as binding, platemaking, prepress operation, cartographic 11,028
composition, and typesetting.
(c) "Contract for printing" means an oral or written 11,031
agreement for the purchase of printed materials produced by a 11,032
commercial printer.
(d) "Intangible property located at the premises of a 11,035
commercial printer" means intangible property of any kind owned 11,036
or licensed by a customer of the commercial printer and furnished 11,037
to the commercial printer for use in commercial printing. 11,038
(e) "Printed material" means any tangible personal 11,041
property produced or processed by a commercial printer pursuant 11,042
to a contract for printing.
(f) "Related member" has the same meaning as in division 11,045
(A)(6) of section 5733.042 of the Revised Code without regard to 11,046
division (B) of that section. 11,048
(2) Except as provided in divisions (D)(3) and (4) of this 11,050
section, a corporation not otherwise subject to the tax imposed 11,051
by section 5733.06 of the Revised Code for a tax year does not 11,052
become subject to that tax for the tax year solely by reason of 11,054
any one or more of the following occurring in this state during 11,055
the taxable year that ends immediately prior to the tax year: 11,056
(a) Ownership by the corporation or a related member of 11,059
the corporation of tangible personal property or intangible 11,060
property located during all or any portion of the taxable year or 11,061
on the first day of the tax year at the premises of a commercial 11,062
printer with which the corporation or the corporation's related 11,063
member has a contract for printing with respect to such property 11,064
or the premises of a commercial printer's related member with 11,065
which the corporation or the corporation's related member has a 11,066
contract for printing with respect to such property; 11,067
259
(b) Sales by the corporation or a related member of the 11,070
corporation of property produced at and shipped or distributed 11,071
from the premises of a commercial printer with which the 11,072
corporation or the corporation's related member has a contract 11,073
for printing with respect to such property or the premises of a 11,074
commercial printer's related member with which the corporation or 11,075
the corporation's related member has a contract for printing with 11,076
respect to such property;
(c) Activities of employees, officers, agents, or 11,079
contractors of the corporation or a related member of the 11,080
corporation on the premises of a commercial printer with which 11,081
the corporation or the corporation's related member has a 11,082
contract for printing or the premises of a commercial printer's 11,083
related member with which the corporation or the corporation's 11,084
related member has a contract for printing, where the activities 11,085
are directly and solely related to quality control, distribution, 11,086
or printing services, or any combination thereof, performed by or 11,087
at the direction of the commercial printer or the commercial 11,088
printer's related member.
(3) The exemption under this division does not apply for a 11,090
taxable year to any corporation having on the first day of 11,091
January of the tax year or at any time during the taxable year 11,093
ending immediately preceding the first day of January of the tax 11,095
year a related member which, on the first day of January of the 11,096
tax year or during any portion of such taxable year of the 11,097
corporation, has nexus in or with this state under the 11,098
Constitution of the United States or holds a certificate of 11,100
compliance with the laws of this state authorizing it to do 11,101
business in this state.
(4) With respect to allowing the exemption under this 11,103
division, the tax commissioner shall be guided by the doctrines 11,104
of "economic reality," "sham transaction," "step transaction," 11,105
and "substance over form." A corporation shall bear the burden 11,106
of establishing by a preponderance of the evidence that any 11,107
260
transaction giving rise to an exemption claimed under this 11,108
division did not have as a principal purpose the avoidance of any 11,110
portion of the tax imposed by section 5733.06 of the Revised
Code.
Application of the doctrines listed in division (D)(4) of 11,113
this section is not limited to this division. 11,114
Sec. 5733.33. (A) As used in this section: 11,123
(1) "Manufacturing machinery and equipment" means engines 11,125
and machinery, and tools and implements, of every kind used, or 11,126
designed to be used, in refining and manufacturing. 11,128
"MANUFACTURING MACHINERY AND EQUIPMENT" DOES NOT INCLUDE PROPERTY
ACQUIRED AFTER DECEMBER 31, 1999, THAT IS USED: 11,129
(a) FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY; 11,131
(b) FOR THE GENERATION OF ELECTRICITY IF FIFTY PER CENT OR 11,133
MORE OF THE ELECTRICITY THAT THE PROPERTY GENERATES IS CONSUMED, 11,134
DURING THE ONE-HUNDRED-TWENTY-MONTH PERIOD COMMENCING WITH THE 11,136
DATE THE PROPERTY IS PLACED IN SERVICE, BY PERSONS THAT ARE NOT 11,137
RELATED MEMBERS TO THE PERSON WHO GENERATES THE ELECTRICITY. 11,138
(2) "New manufacturing machinery and equipment" means 11,140
manufacturing machinery and equipment, the original use in this 11,141
state of which commences with the taxpayer or with a partnership 11,142
of which the taxpayer is a partner. "NEW MANUFACTURING MACHINERY 11,144
AND EQUIPMENT" DOES NOT INCLUDE PROPERTY ACQUIRED AFTER DECEMBER 11,145
31, 1999, THAT IS USED:
(a) FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY; 11,147
(b) FOR THE GENERATION OF ELECTRICITY IF FIFTY PER CENT OR 11,149
MORE OF THE ELECTRICITY THAT THE PROPERTY GENERATES IS CONSUMED, 11,150
DURING THE ONE-HUNDRED-TWENTY-MONTH PERIOD COMMENCING WITH THE 11,152
DATE THE PROPERTY IS PLACED IN SERVICE, BY PERSONS THAT ARE NOT 11,153
RELATED MEMBERS TO THE PERSON WHO GENERATES THE ELECTRICITY. 11,154
(3)(a) "Purchase" has the same meaning as in section 11,156
179(d)(2) of the Internal Revenue Code. 11,157
(b) Any purchase, for purposes of this section, is 11,159
considered to occur at the time the agreement to acquire the 11,160
261
property to be purchased becomes binding. 11,161
(c) Notwithstanding section 179(d) of the Internal Revenue 11,163
Code, a taxpayer's direct or indirect acquisition of new 11,164
manufacturing machinery and equipment is not purchased on or 11,165
after July 1, 1995, if the taxpayer, or a person whose 11,166
relationship to the taxpayer is described in subparagraphs (A), 11,167
(B), or (C) of section 179(d)(2) of the Internal Revenue Code, 11,168
had directly or indirectly entered into a binding agreement to 11,169
acquire the property at any time prior to July 1, 1995. 11,170
(4) "Qualifying period" means the period that begins July 11,172
1, 1995, and ends December 31, 2000. 11,173
(5) "County average new manufacturing machinery and 11,175
equipment investment" means either of the following: 11,176
(a) The average annual cost of new manufacturing machinery 11,179
and equipment purchased for use in the county during baseline 11,180
years, in the case of a taxpayer or partnership that was in 11,181
existence for more than one year during baseline years. 11,182
(b) Zero, in the case of a taxpayer or partnership that 11,184
was not in existence for more than one year during baseline 11,185
years. 11,186
(6) "Partnership" includes a limited liability company 11,189
formed under Chapter 1705. of the Revised Code or under the laws 11,191
of any other state, provided that the company is not classified 11,192
for federal income tax purposes as an association taxable as a 11,193
corporation. 11,194
(7) "Partner" includes a member of a limited liability 11,196
company formed under Chapter 1705. of the Revised Code or under 11,198
the laws of any other state, provided that the company is not 11,199
classified for federal income tax purposes as an association 11,200
taxable as a corporation. 11,201
(8) "Distressed area" means either a municipal corporation 11,203
that has a population of at least fifty thousand or a county that 11,205
meets two of the following criteria of economic distress, or a 11,206
municipal corporation the majority of the population of which is 11,207
262
situated in such a county:
(a) Its average rate of unemployment, during the most 11,210
recent five-year period for which data are available, is equal to 11,211
at least one hundred twenty-five per cent of the average rate of 11,212
unemployment for the United States for the same period;
(b) It has a per capita income equal to or below eighty 11,215
per cent of the median county per capita income of the United 11,216
States as determined by the most recently available figures from 11,217
the United States census bureau; 11,218
(c)(i) In the case of a municipal corporation, at least 11,221
twenty per cent of the residents have a total income for the most 11,222
recent census year that is below the official poverty line; 11,223
(ii) In the case of a county, in intercensal years, the 11,226
county has a ratio of transfer payment income to total county 11,227
income equal to or greater than twenty-five per cent. 11,228
(9) "Eligible area" means a distressed area, a labor 11,230
surplus area, an inner city area, or a situational distress area. 11,232
(10) "Inner city area" means, in a municipal corporation 11,234
that has a population of at least one hundred thousand and does 11,235
not meet the criteria of a labor surplus area or a distressed 11,236
area, targeted investment areas established by the municipal 11,237
corporation within its boundaries that are comprised of the most 11,238
recent census block tracts that individually have at least twenty 11,239
per cent of their population at or below the state poverty level 11,240
or other census block tracts contiguous to such census block 11,241
tracts.
(11) "Labor surplus area" means an area designated as a 11,243
labor surplus area by the United States department of labor. 11,245
(12) "Official poverty line" has the same meaning as in 11,247
division (A) of section 3923.51 of the Revised Code. 11,248
(13) "Situational distress area" means a county or a 11,250
municipal corporation that has experienced or is experiencing a 11,251
closing or downsizing of a major employer, that will adversely 11,252
affect the county's or municipal corporation's economy. In order 11,254
263
to be designated as a situational distress area for a period not 11,255
to exceed thirty-six months, the county or municipal corporation 11,256
may petition the director of development. The petition shall 11,257
include written documentation that demonstrates all of the 11,258
following adverse effects on the local economy: 11,259
(a) The number of jobs lost by the closing or downsizing; 11,261
(b) The impact that the job loss has on the county's or 11,264
municipal corporation's unemployment rate as measured by the Ohio 11,265
bureau of employment services; 11,266
(c) The annual payroll associated with the job loss; 11,268
(d) The amount of state and local taxes associated with 11,270
the job loss;
(e) The impact that the closing or downsizing has on the 11,272
suppliers located in the county or municipal corporation. 11,273
(14) "Cost" has the same meaning and limitation as in 11,275
section 179(d)(3) of the Internal Revenue Code. 11,276
(15) "Baseline years" means: 11,278
(a) Calendar years 1992, 1993, and 1994, with regard to a 11,280
credit claimed for the purchase during calendar year 1995, 1996, 11,281
1997, or 1998 of new manufacturing machinery and equipment; 11,282
(b) Calendar years 1993, 1994, and 1995, with regard to a 11,284
credit claimed for the purchase during calendar year 1999 of new 11,285
manufacturing machinery and equipment; 11,286
(c) Calendar years 1994, 1995, and 1996, with regard to a 11,288
credit claimed for the purchase during calendar year 2000 of new 11,289
manufacturing machinery and equipment. 11,290
(B)(1) A nonrefundable credit is allowed against the tax 11,293
imposed by section 5733.06 of the Revised Code for a taxpayer 11,294
that purchases new manufacturing machinery and equipment during 11,295
the qualifying period, provided that the new manufacturing 11,296
machinery and equipment are installed in this state no later than 11,297
December 31, 2001. 11,298
(2) The credit is also available to a taxpayer that is a 11,300
partner in a partnership that purchases new manufacturing 11,301
264
machinery and equipment during the qualifying period, provided 11,302
that the partnership installs the new manufacturing machinery and 11,303
equipment in this state no later than December 31, 2001. The 11,304
taxpayer shall determine the credit amount as provided in 11,306
division (H) of this section.
(3)(a) Except as otherwise provided in division (B)(3)(b) 11,308
of this section, a credit may be claimed under this section in 11,309
excess of one million dollars only if the cost of all 11,310
manufacturing machinery and equipment owned in this state by the 11,311
taxpayer claiming the credit on the last day of the calendar year 11,312
exceeds the cost of all manufacturing machinery and equipment 11,313
owned in this state by the taxpayer on the first day of that 11,314
calendar year.
As used in division (B)(3)(a) of this section, "calendar 11,317
year" means the calendar year in which the machinery and
equipment for which the credit is claimed was purchased. 11,318
(b) Division (B)(3)(a) of this section does not apply if 11,321
the taxpayer claiming the credit applies for and is issued a 11,322
waiver of the requirement of that division. A taxpayer may apply 11,323
to the director of the department of development for such a 11,324
waiver in the manner prescribed by the director, and the director 11,325
may issue such a waiver if the director determines that granting 11,326
the credit is necessary to increase or retain employees in this 11,328
state, and that the credit has not caused relocation of 11,329
manufacturing machinery and equipment among counties within this 11,330
state for the primary purpose of qualifying for the credit. 11,331
(C)(1) Except as otherwise provided in division (C)(2) of 11,334
this section, the credit amount is equal to seven and one-half 11,335
per cent of the excess of the cost of the new manufacturing 11,336
machinery and equipment purchased during the calendar year for 11,337
use in a county over the county average new manufacturing 11,338
machinery and equipment investment for that county. 11,339
(2) As used in division (C)(2) of this section, "county 11,342
excess" means the taxpayer's excess cost for a county as computed 11,343
265
under division (C)(1) of this section.
For a taxpayer with a county excess, whose purchases 11,345
included purchases for use in any eligible area in the county, 11,346
the credit amount is equal to thirteen and one-half per cent of 11,347
the cost of the new manufacturing machinery and equipment 11,349
purchased during the calendar year for use in the eligible areas 11,350
in the county, provided that the cost subject to the thirteen and 11,351
one-half per cent rate shall not exceed the county excess. If 11,352
the county excess is greater than the cost of the new 11,353
manufacturing machinery and equipment purchased during the 11,354
calendar year for use in eligible areas in the county, the credit 11,355
amount also shall include an amount equal to seven and one-half 11,357
per cent of the amount of the difference.
(3) If a taxpayer is allowed a credit for purchases of new 11,359
manufacturing machinery and equipment in more than one county or 11,360
eligible area, it shall aggregate the amount of those credits 11,361
each year.
(4) The taxpayer shall claim one-seventh of the credit 11,363
amount for the tax year immediately following the calendar year 11,364
in which the new manufacturing machinery and equipment is 11,365
purchased for use in the county by the taxpayer or partnership. 11,367
One-seventh of the taxpayer credit amount is allowed for each of 11,368
the six ensuing tax years. Except for carried-forward amounts, 11,369
the taxpayer is not allowed any credit amount remaining if the 11,370
new manufacturing machinery and equipment is sold by the taxpayer 11,372
or partnership or is transferred by the taxpayer or partnership 11,373
out of the county before the end of the seven-year period. 11,374
(5)(a) A taxpayer that acquires manufacturing machinery 11,376
and equipment as a result of a merger with the taxpayer with whom 11,378
commenced the original use in this state of the manufacturing 11,379
machinery and equipment, or with a taxpayer that was a partner in 11,380
a partnership with whom commenced the original use in this state 11,381
of the manufacturing machinery and equipment, is entitled to any 11,382
remaining or carried-forward credit amounts to which the taxpayer 11,383
266
was entitled.
(b) A taxpayer that enters into an agreement under 11,385
division (C)(3) of section 5709.62 of the Revised Code and that 11,386
acquires manufacturing machinery or equipment as a result of 11,388
purchasing a large manufacturing facility, as defined in section
5709.61 of the Revised Code, from another taxpayer with whom 11,389
commenced the original use in this state of the manufacturing 11,391
machinery or equipment, and that operates the large manufacturing 11,392
facility so purchased, is entitled to any remaining or
carried-forward credit amounts to which the other taxpayer who 11,393
sold the facility would have been entitled under this section had 11,395
the other taxpayer not sold the manufacturing facility or 11,396
equipment.
(c) New manufacturing machinery and equipment is not 11,399
considered sold if a pass-through entity transfers to another 11,400
pass-through entity substantially all of its assets as part of a 11,401
plan of reorganization under which substantially all gain and 11,402
loss is not recognized by the pass-through entity that is 11,403
transferring the new manufacturing machinery and equipment to the 11,404
transferee and under which the transferee's basis in the new
manufacturing machinery and equipment is determined, in whole or 11,405
in part, by reference to the basis of the pass-through entity 11,406
which transferred the new manufacturing machinery and equipment 11,407
to the transferee. 11,408
(d) Division (C)(5) of this section shall apply only if 11,410
the acquiring taxpayer or transferee does not sell the new 11,412
manufacturing machinery and equipment or transfer the new 11,413
manufacturing machinery and equipment out of the county before 11,414
the end of the seven-year period to which division (C)(4) of this 11,415
section refers.
(e) Division (C)(5)(b) of this section applies only to the 11,418
extent that the taxpayer that sold the manufacturing machinery or 11,419
equipment, upon request, timely provides to the tax commissioner 11,420
any information that the tax commissioner considers to be 11,421
267
necessary to ascertain any remaining or carried-forward amounts 11,422
to which the taxpayer that sold the facility would have been 11,423
entitled under this section had the taxpayer not sold the 11,424
manufacturing machinery or equipment. Nothing in division 11,425
(C)(5)(b) or (e) of this section shall be construed to allow a 11,427
taxpayer to claim any credit amount with respect to the acquired 11,428
manufacturing machinery or equipment that is greater than the 11,429
amount that would have been available to the other taxpayer that 11,430
sold the manufacturing machinery or equipment had the other 11,431
taxpayer not sold the manufacturing machinery or equipment. 11,432
(D) The taxpayer shall claim the credit in the order 11,435
required under section 5733.98 of the Revised Code. Each year, 11,436
any credit amount in excess of the tax due under section 5733.06 11,437
of the Revised Code after allowing for any other credits that 11,439
precede the credit under this section in that order may be 11,440
carried forward for three tax years. 11,441
(E) A taxpayer purchasing new manufacturing machinery and 11,444
equipment and intending to claim the credit shall file, with the 11,445
department of development, a notice of intent to claim the credit 11,446
on a form prescribed by the department of development. The 11,447
department of development shall inform the tax commissioner of 11,448
the notice of intent to claim the credit. 11,449
(F) The director of development shall annually certify, by 11,452
the first day of January of each year during the qualifying 11,453
period, the eligible areas for the tax credit for the calendar 11,454
year that includes that first day of January. The director shall 11,455
send a copy of the certification to the tax commissioner. 11,456
(G) New manufacturing machinery and equipment for which a 11,458
taxpayer claims the credit under section 5733.31, 5733.311, 11,460
5747.26, or 5747.261 of the Revised Code shall not be considered 11,462
new manufacturing machinery and equipment for purposes of the 11,463
credit under this section.
(H)(1) With regard to a taxpayer that is a partner in a 11,465
partnership, the county average new manufacturing machinery and 11,466
268
equipment investment shall be determined based on the number of 11,467
years, if any, the partnership was in existence during baseline 11,468
years. In determining the county average new manufacturing 11,469
machinery and equipment investment, the excess of the cost of new 11,470
manufacturing machinery and equipment purchased during the 11,471
calendar year, and all other amounts necessary to calculate the
credit allowed by this section, the taxpayer shall include the 11,472
taxpayer's distributive share of the cost of new manufacturing 11,473
machinery and equipment purchased by a partnership in which the 11,474
corporation had a direct or indirect investment during the 11,475
calendar year prior to the first day of a tax year for which the 11,476
taxpayer is claiming the credit. These determinations and 11,477
calculations shall be made for the taxpayer's calendar year 11,478
during which the partnership made the purchase. 11,479
(2) Nothing in this section shall be construed to limit or 11,481
disallow pass-through treatment of a pass-through entity's 11,482
income, deductions, credits, or other amounts necessary to 11,483
compute the tax imposed by section 5733.06 of the Revised Code 11,484
and the credits allowed by this chapter. 11,485
(I)(1) NOTWITHSTANDING SECTIONS 5733.11 AND 5747.13 OF THE 11,488
REVISED CODE, BUT SUBJECT TO DIVISION (I)(2) OF THIS SECTION, THE 11,490
TAX COMMISSIONER MAY ISSUE AN ASSESSMENT AGAINST A PERSON WITH
RESPECT TO A CREDIT CLAIMED UNDER THIS SECTION FOR NEW 11,491
MANUFACTURING MACHINERY AND EQUIPMENT DESCRIBED IN DIVISION 11,493
(A)(1)(b) OR (2)(b) OF THIS SECTION, IF THE MACHINERY OR 11,495
EQUIPMENT SUBSEQUENTLY DOES NOT QUALIFY FOR THE CREDIT. 11,496
(2) DIVISION (I)(1) OF THIS SECTION SHALL NOT APPLY AFTER 11,498
THE TWENTY-FOURTH MONTH FOLLOWING THE LAST DAY OF THE PERIOD 11,499
DESCRIBED IN DIVISIONS (A)(1)(b) AND (2)(b) OF THIS SECTION. 11,502
Sec. 5733.39. (A) AS USED IN THIS SECTION: 11,505
(1) "COMPLIANCE FACILITY" MEANS PROPERTY THAT IS DESIGNED, 11,507
CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC 11,508
GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING WITH 11,510
PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE 11,512
269
"CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 11,513
7651, AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN 11,514
COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE 11,515
REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER 11,516
THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS 11,517
ARE EMITTED INTO THE ATMOSPHERE. "COMPLIANCE FACILITY" ALSO 11,518
INCLUDES ANY OF THE FOLLOWING: 11,519
(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL 11,521
BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE 11,522
PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL 11,523
PROCESSED BY THE COMPLIANCE FACILITY IS BURNED; 11,524
(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY 11,526
WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT 11,527
ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, 11,528
AND OPERATION, OF THE COMPLIANCE FACILITY; 11,529
(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 11,531
3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES 11,532
PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION 11,533
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 11,534
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF 11,535
WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME 11,536
PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT 11,537
PRODUCES THE WASTES DISPOSED OF AT THE FACILITY; 11,538
(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, 11,540
OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING 11,541
FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS 11,542
PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION 11,543
BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE 11,544
COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED; 11,545
(e) A FLUE GAS DESULFURIZATION SYSTEM THAT IS CONNECTED TO 11,548
A COAL-FIRED ELECTRIC GENERATING UNIT AND THAT EITHER WAS PLACED 11,549
IN SERVICE PRIOR TO JULY 10, 1991, OR CONSTRUCTION OF WHICH WAS 11,550
COMMENCED PRIOR TO THAT DATE;
(f) FACILITIES OR EQUIPMENT ACQUIRED, CONSTRUCTED, OR 11,553
270
INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING UNIT
PRIMARILY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS PRODUCED BY 11,554
A COMPLIANCE FACILITY OR OTHER COAL COMBUSTION BYPRODUCTS 11,555
PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE COMPLIANCE 11,556
FACILITY IS INCORPORATED OR CONNECTED. 11,557
(2) "OHIO COAL" HAS THE SAME MEANING AS IN SECTION 4913.01 11,560
OF THE REVISED CODE. 11,561
(3) "SALE AND LEASEBACK TRANSACTION" HAS THE SAME MEANING 11,563
AS IN SECTION 5727.01 OF THE REVISED CODE. 11,566
(B) BEGINNING IN TAX YEAR 2002, AN ELECTRIC COMPANY SHALL 11,569
BE ALLOWED A NONREFUNDABLE CREDIT AGAINST THE TAX IMPOSED BY 11,570
SECTION 5733.06 OF THE REVISED CODE FOR OHIO COAL USED IN ANY OF 11,573
ITS COAL-FIRED ELECTRIC GENERATING UNITS AFTER APRIL 30, 2001. 11,574
SECTION 5733.057 OF THE REVISED CODE SHALL APPLY WHEN CALCULATING 11,578
THE CREDIT ALLOWED BY THIS SECTION. THE CREDIT SHALL BE CLAIMED 11,579
AT THE RATE OF ONE DOLLAR PER TON OF OHIO COAL BURNED IN A 11,580
COAL-FIRED ELECTRIC GENERATING UNIT DURING THE TAXABLE YEAR 11,581
ENDING IMMEDIATELY PRECEDING THE TAX YEAR. THE CREDIT IS ALLOWED 11,583
ONLY IF ALL OF THE FOLLOWING CONDITIONS ARE MET DURING SUCH 11,584
TAXABLE YEAR:
(1) THE COAL-FIRED ELECTRIC GENERATING UNIT IS OWNED AND 11,586
USED BY THE COMPANY CLAIMING THE CREDIT OR LEASED AND USED BY 11,587
THAT COMPANY UNDER A SALE AND LEASEBACK TRANSACTION. 11,588
(2) A COMPLIANCE FACILITY IS ATTACHED TO, INCORPORATED IN, 11,591
OR USED IN CONJUNCTION WITH THE COAL-FIRED GENERATING UNIT. 11,592
(3) EITHER OF THE FOLLOWING APPLIES: 11,594
(a) IN THE CASE OF A COAL-FIRED ELECTRIC GENERATING UNIT 11,597
THAT BURNS COAL IN COMBINATION WITH ANOTHER FUEL FOR THE PURPOSE 11,598
OF COMPLYING WITH PHASE I ACID RAIN CONTROL REQUIREMENTS UNDER 11,601
TITLE IV OF THE "CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 11,607
2584, 42 U.S.C.A. 7651, AT LEAST EIGHTY PER CENT OF THE HEAT 11,609
INPUT DURING THE TAXABLE YEAR IS FROM OHIO COAL. 11,611
(b) IN THE CASE OF ANY OTHER COAL-FIRED ELECTRIC 11,613
GENERATING UNIT, AT LEAST NINETY PER CENT OF THE HEAT INPUT 11,614
271
DURING THE TAXABLE YEAR IS FROM OHIO COAL. 11,616
(C) THE CREDIT SHALL BE CLAIMED IN THE ORDER REQUIRED 11,619
UNDER SECTION 5733.98 OF THE REVISED CODE. IF THE CREDIT EXCEEDS 11,621
THE TAX IMPOSED BY SECTION 5733.06 OF THE REVISED CODE AFTER ALL 11,624
OTHER NONREFUNDABLE CREDITS FOR THE TAX YEAR AS SET FORTH IN 11,625
SECTION 5733.98 OF THE REVISED CODE, THE EXCESS SHALL NOT BE 11,627
ALLOWED AS A CREDIT EITHER AGAINST THE TAXES DUE FOR ANY OTHER 11,628
YEAR OR AGAINST ANY OTHER TAX OR FEE. NOTHING HEREIN SHALL BE 11,629
CONSTRUED TO PROVIDE FOR CARRYOVER OR CARRYBACK OF ANY UNUSED 11,631
CREDIT PROVIDED BY ANY OTHER SECTION OF THE REVISED CODE OR FOR 11,633
THE APPLICATION OF ANY UNUSED CREDIT PROVIDED BY ANY OTHER 11,634
SECTION OF THE REVISED CODE AGAINST ANY OTHER TAX OR FEE IF SUCH 11,637
SECTION DOES NOT EXPRESSLY PROVIDE EITHER FOR A CARRYOVER OR 11,638
CARRYBACK OF ANY UNUSED CREDIT OR FOR THE APPLICATION OF AN 11,639
UNUSED CREDIT AGAINST ANY OTHER TAX OR FEE. 11,640
(D) THE SUM OF THE CREDITS ALLOWED FOR ALL YEARS UNDER 11,643
SECTION 5727.391 OF THE REVISED CODE FOR COAL BURNED IN EACH 11,645
COAL-FIRED ELECTRIC GENERATING UNIT AND THE SUM OF THE CREDITS 11,646
ALLOWED FOR ALL TAX YEARS UNDER THIS SECTION SHALL NOT EXCEED 11,647
TWENTY PER CENT OF THE COST OF THE COMPLIANCE FACILITY ATTACHED 11,648
TO, INCORPORATED IN, OR USED IN CONJUNCTION WITH THE UNIT. IF A 11,649
COMPLIANCE FACILITY IS USED IN CONJUNCTION WITH MORE THAN ONE 11,650
GENERATING UNIT, THE TAX COMMISSIONER SHALL PRORATE ITS COST 11,651
AMONG THE UNITS. 11,652
(E) THE DIRECTOR OF ENVIRONMENTAL PROTECTION, UPON THE 11,655
REQUEST OF THE TAX COMMISSIONER, SHALL CERTIFY WHETHER A FACILITY 11,656
IS A COMPLIANCE FACILITY. IN THE CASE OF A COMPLIANCE FACILITY 11,657
OWNED BY AN ELECTRIC COMPANY, THE PUBLIC UTILITIES COMMISSION 11,658
SHALL CERTIFY TO THE TAX COMMISSIONER THE COST OF THE FACILITY AS 11,659
OF THE DATE IT WAS PLACED IN SERVICE. IN THE CASE OF A 11,660
COMPLIANCE FACILITY OWNED BY A PERSON OTHER THAN AN ELECTRIC 11,661
COMPANY, THE TAX COMMISSIONER SHALL DETERMINE THE COST OF THE 11,662
FACILITY AS OF THE DATE IT WAS PLACED IN SERVICE. IF THE OWNER 11,663
OF SUCH A FACILITY FAILS TO FURNISH THE INFORMATION NECESSARY TO 11,664
272
MAKE THAT DETERMINATION, NO CREDIT SHALL BE ALLOWED. 11,665
Sec. 5733.98. (A) To provide a uniform procedure for 11,674
calculating the amount of tax imposed by section 5733.06 of the 11,675
Revised Code that is due under this chapter, a taxpayer shall 11,677
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised 11,678
Code:
(1) The credit for taxes paid by a qualifying pass-through 11,680
entity allowed under section 5733.0611 of the Revised Code; 11,681
(2) The credit for qualifying affiliated groups under 11,683
section 5733.068 of the Revised Code; 11,684
(3) The subsidiary corporation credit under section 11,686
5733.067 of the Revised Code; 11,687
(4) The savings and loan assessment credit under section 11,689
5733.063 of the Revised Code; 11,690
(5) The credit for recycling and litter prevention 11,692
donations under section 5733.064 of the Revised Code; 11,694
(6) The credit for employers that enter into agreements 11,697
with child day-care centers under section 5733.36 of the Revised 11,698
Code;
(7) The credit for employers that reimburse employee child 11,700
day-care expenses under section 5733.38 of the Revised Code; 11,702
(8) The credit for manufacturing investments under section 11,704
5733.061 of the Revised Code; 11,705
(9) The credit for purchases of new manufacturing 11,707
machinery and equipment under section 5733.31 or section 5733.311 11,708
of the Revised Code; 11,709
(10) The second credit for purchases of new manufacturing 11,712
machinery and equipment under section 5733.33 of the Revised 11,713
Code;
(11) The enterprise zone credit under section 5709.66 of 11,715
the Revised Code; 11,716
(12) The credit for the eligible costs associated with a 11,718
voluntary action under section 5733.34 of the Revised Code; 11,720
273
(13) The credit for employers that establish on-site child 11,723
day-care under section 5733.37 of the Revised Code; 11,724
(14) The credit for purchases of qualifying grape 11,726
production property under section 5733.32 of the Revised Code; 11,727
(15) The export sales credit under section 5733.069 of the 11,730
Revised Code;
(16) The credit for research and development and 11,732
technology transfer investors under section 5733.35 of the 11,733
Revised Code;
(17) The enterprise zone credits under section 5709.65 of 11,736
the Revised Code;
(18) THE CREDIT FOR USING OHIO COAL UNDER SECTION 5733.39 11,738
OF THE REVISED CODE;
(19) The refundable jobs creation credit under section 11,740
5733.0610 of the Revised Code. 11,741
(B) For any credit except the refundable jobs creation 11,743
credit, the amount of the credit for a tax year shall not exceed 11,744
the tax due after allowing for any other credit that precedes it 11,745
in the order required under this section. Any excess amount of a 11,746
particular credit may be carried forward if authorized under the 11,747
section creating that credit. 11,748
Sec. 5739.011. (A) As used in this section: 11,757
(1) "Manufacturer" means a person who is engaged in 11,759
manufacturing, processing, assembling, or refining a product for 11,760
sale. 11,761
(2) "Manufacturing facility" means a single location where 11,763
a manufacturing operation is conducted, including locations 11,764
consisting of one or more buildings or structures in a contiguous 11,765
area owned or controlled by the manufacturer. 11,766
(3) "Materials handling" means the movement of the product 11,768
being or to be manufactured, during which movement the product is 11,769
not undergoing any substantial change or alteration in its state 11,770
or form. 11,771
(4) "Testing" means a process or procedure to identify the 11,773
274
properties or assure the quality of a material or product. 11,774
(5) "Completed product" means a manufactured item that is 11,776
in the form and condition as it will be sold by the manufacturer. 11,777
An item is completed when all processes that change or alter its 11,778
state or form or enhance its value are finished, even though the 11,779
item subsequently will be tested to ensure its quality or be 11,780
packaged for storage or shipment. 11,781
(6) "Continuous manufacturing operation" means the process 11,783
in which raw materials or components are moved through the steps 11,784
whereby manufacturing occurs. Materials handling of raw 11,785
materials or parts from the point of receipt or pre-production 11,786
PREPRODUCTION storage or of a completed product, to or from 11,787
storage, to or from packaging, or to the place from which the 11,789
completed product will be shipped, is not a part of a continuous 11,790
manufacturing operation. 11,791
(B) For purposes of division (E)(9) of section 5739.01 of 11,793
the Revised Code, the "thing transferred" includes, but is not 11,794
limited to, any of the following: 11,795
(1) Production machinery and equipment that act upon the 11,797
product or machinery and equipment that treat the materials or 11,798
parts in preparation for the manufacturing operation; 11,799
(2) Materials handling equipment that moves the product 11,801
through a continuous manufacturing operation; equipment that 11,802
temporarily stores the product during the manufacturing 11,803
operation; or, excluding motor vehicles licensed to operate on 11,804
public highways, equipment used in intraplant or interplant 11,805
transfers of work in process where the plant or plants between 11,806
which such transfers occur are manufacturing facilities operated 11,807
by the same person; 11,808
(3) Catalysts, solvents, water, acids, oil, and similar 11,810
consumables that interact with the product and that are an 11,811
integral part of the manufacturing operation; 11,812
(4) Machinery, equipment, and other tangible personal 11,814
property used during the manufacturing operation that control, 11,815
275
physically support, produce power for, lubricate, or are 11,816
otherwise necessary for the functioning of production machinery 11,817
and equipment and the continuation of the manufacturing 11,818
operation; 11,819
(5) Machinery, equipment, fuel, power, material, parts, 11,821
and other tangible personal property used to manufacture 11,822
machinery, equipment, or other tangible personal property used in 11,823
manufacturing a product for sale; 11,824
(6) Machinery, equipment, and other tangible personal 11,826
property used by a manufacturer to test raw materials, the 11,827
product being manufactured, or the completed product; 11,828
(7) Machinery and equipment used to handle or temporarily 11,830
store scrap that is intended to be reused in the manufacturing 11,831
operation at the same manufacturing facility; 11,832
(8) Electricity, coke COKE, gas, water, steam, and similar 11,834
substances used in the manufacturing operation; machinery and 11,835
equipment used for, and fuel consumed in, producing or extracting 11,836
those substances; and machinery, equipment, and other tangible 11,837
personal property used to treat, filter, pump, alter voltage, or 11,838
otherwise make the substance suitable for use in the 11,839
manufacturing operation; AND MACHINERY AND EQUIPMENT USED TO 11,840
PRODUCE ELECTRICITY FOR USE IN THE MANUFACTURING OPERATION; 11,841
(9) Machinery, equipment, and other tangible personal 11,843
property used to transport or transmit electricity, coke, gas, 11,844
water, steam, or similar substances used in the manufacturing 11,845
operation from the point of generation, if produced by the 11,846
manufacturer, or from the point where the substance enters the 11,847
manufacturing facility, if purchased by the manufacturer, to the 11,848
manufacturing operation; 11,849
(10) Machinery, equipment, and other tangible personal 11,851
property that treats, filters, cools, refines, or otherwise 11,852
renders water, steam, acid, oil, solvents, or similar substances 11,853
used in the manufacturing operation reusable, provided that the 11,854
substances are intended for reuse and not for disposal, sale, or 11,855
276
transportation from the manufacturing facility; 11,856
(11) Parts, components, and repair and installation 11,858
services for items described in division (B) of this section. 11,859
(C) For purposes of division (E)(9) of section 5739.01 of 11,861
the Revised Code, the "thing transferred" does not include any of 11,862
the following: 11,863
(1) Tangible personal property used in administrative, 11,865
personnel, security, inventory control, record-keeping, ordering, 11,866
billing, or similar functions; 11,867
(2) Tangible personal property used in storing raw 11,869
materials or parts prior to the commencement of the manufacturing 11,870
operation or used to handle or store a completed product, 11,871
including storage that actively maintains a completed product in 11,872
a marketable state or form; 11,873
(3) Tangible personal property used to handle or store 11,875
scrap or waste intended for disposal, sale, or other disposition, 11,876
other than reuse in the manufacturing operation at the same 11,877
manufacturing facility; 11,878
(4) Tangible personal property that is or is to be 11,880
incorporated into realty; 11,881
(5) Machinery, equipment, and other tangible personal 11,883
property used for ventilation, dust, or gas collection, humidity 11,884
or temperature regulation, or similar environmental control, 11,885
except machinery, equipment, and other tangible personal property 11,886
that totally regulates the environment in a special and limited 11,887
area of the manufacturing facility where the regulation is 11,888
essential for production to occur; 11,889
(6) Tangible personal property used for the protection and 11,891
safety of workers, unless the property is attached to or 11,892
incorporated into machinery and equipment used in a continuous 11,893
manufacturing operation; 11,894
(7) Tangible personal property used to store fuel, water, 11,896
solvents, acid, oil, or similar items consumed in the 11,897
manufacturing operation; 11,898
277
(8) Machinery, equipment, and other tangible personal 11,900
property used for research and development; 11,901
(9) Machinery, equipment, and other tangible personal 11,903
property used to clean, repair, or maintain real or personal 11,904
property in the manufacturing facility; 11,905
(10) Motor vehicles registered for operation on the public 11,907
highways. 11,908
(D) For purposes of division (E)(9) of section 5739.01 of 11,910
the Revised Code, if the "thing transferred" is a machine used by 11,911
a manufacturer in both a taxable and an exempt manner, it shall 11,912
be totally taxable or totally exempt from taxation based upon its 11,913
quantified primary use. If the "things transferred" are 11,914
fungibles, they shall be taxed based upon the proportion of the 11,915
fungibles used in a taxable manner. 11,916
Sec. 5739.02. For the purpose of providing revenue with 11,925
which to meet the needs of the state, for the use of the general 11,926
revenue fund of the state, for the purpose of securing a thorough 11,927
and efficient system of common schools throughout the state, for 11,928
the purpose of affording revenues, in addition to those from 11,929
general property taxes, permitted under constitutional 11,930
limitations, and from other sources, for the support of local 11,931
governmental functions, and for the purpose of reimbursing the 11,932
state for the expense of administering this chapter, an excise 11,933
tax is hereby levied on each retail sale made in this state. 11,934
(A) The tax shall be collected pursuant to the schedules 11,936
in section 5739.025 of the Revised Code. 11,937
The tax applies and is collectible when the sale is made, 11,939
regardless of the time when the price is paid or delivered. 11,940
In the case of a sale, the price of which consists in whole 11,942
or in part of rentals for the use of the thing transferred, the 11,943
tax, as regards such rentals, shall be measured by the 11,944
installments thereof. 11,945
In the case of a sale of a service defined under division 11,947
(MM) or (NN) of section 5739.01 of the Revised Code, the price of 11,948
278
which consists in whole or in part of a membership for the 11,949
receipt of the benefit of the service, the tax applicable to the 11,950
sale shall be measured by the installments thereof. 11,951
(B) The tax does not apply to the following: 11,953
(1) Sales to the state or any of its political 11,955
subdivisions, or to any other state or its political subdivisions 11,956
if the laws of that state exempt from taxation sales made to this 11,957
state and its political subdivisions; 11,958
(2) Sales of food for human consumption off the premises 11,960
where sold; 11,961
(3) Sales of food sold to students only in a cafeteria, 11,963
dormitory, fraternity, or sorority maintained in a private, 11,964
public, or parochial school, college, or university; 11,965
(4) Sales of newspapers, and of magazine subscriptions 11,967
shipped by second class mail, and sales or transfers of magazines 11,968
distributed as controlled circulation publications; 11,969
(5) The furnishing, preparing, or serving of meals without 11,971
charge by an employer to an employee provided the employer 11,972
records the meals as part compensation for services performed or 11,973
work done; 11,974
(6) Sales of motor fuel upon receipt, use, distribution, 11,977
or sale of which in this state a tax is imposed by the law of 11,978
this state, but this exemption shall not apply to the sale of 11,979
motor fuel on which a refund of the tax is allowable under 11,980
section 5735.14 of the Revised Code; and the tax commissioner may 11,981
deduct the amount of tax levied by this section applicable to the 11,982
price of motor fuel when granting a refund of motor fuel tax 11,983
pursuant to section 5735.14 of the Revised Code and shall cause 11,984
the amount deducted to be paid into the general revenue fund of 11,985
this state;
(7) Sales of natural gas by a natural gas company, of 11,987
electricity by an electric company, of water by a water-works 11,988
company, or of steam by a heating company, if in each case the 11,989
thing sold is delivered to consumers through wires, pipes, or 11,990
279
conduits, and all sales of communications services by a telephone 11,991
or telegraph company, all terms as defined in section 5727.01 of 11,992
the Revised Code; 11,993
(8) Casual sales by a person, or auctioneer employed 11,995
directly by the person to conduct such sales, except as to such 11,997
sales of motor vehicles, watercraft or outboard motors required 11,998
to be titled under section 1548.06 of the Revised Code, 11,999
watercraft documented with the United States coast guard, 12,000
snowmobiles, and all-purpose vehicles as defined in section 12,001
4519.01 of the Revised Code; 12,002
(9) Sales of services or tangible personal property, other 12,004
than motor vehicles, mobile homes, and manufactured homes, by 12,006
churches or by nonprofit organizations operated exclusively for 12,007
charitable purposes as defined in division (B)(12) of this 12,008
section, provided that the number of days on which such tangible 12,009
personal property or services, other than items never subject to 12,010
the tax, are sold does not exceed six in any calendar year. If 12,011
the number of days on which such sales are made exceeds six in 12,012
any calendar year, the church or organization shall be considered 12,013
to be engaged in business and all subsequent sales by it shall be 12,014
subject to the tax. In counting the number of days, all sales by 12,015
groups within a church or within an organization shall be 12,016
considered to be sales of that church or organization, except 12,017
that sales made by separate student clubs and other groups of 12,018
students of a primary or secondary school, and sales made by a 12,019
parent-teacher association, booster group, or similar 12,020
organization that raises money to support or fund curricular or 12,021
extracurricular activities of a primary or secondary school, 12,022
shall not be considered to be sales of such school, and sales by 12,023
each such club, group, association, or organization shall be 12,024
counted separately for purposes of the six-day limitation. This 12,025
division does not apply to sales by a noncommercial educational 12,026
radio or television broadcasting station. 12,027
(10) Sales not within the taxing power of this state under 12,029
280
the Constitution of the United States; 12,030
(11) The transportation of persons or property, unless the 12,032
transportation is by a private investigation and security 12,033
service; 12,034
(12) Sales of tangible personal property or services to 12,036
churches, to organizations exempt from taxation under section 12,037
501(c)(3) of the Internal Revenue Code of 1986, and to any other 12,038
nonprofit organizations operated exclusively for charitable 12,039
purposes in this state, no part of the net income of which inures 12,040
to the benefit of any private shareholder or individual, and no 12,041
substantial part of the activities of which consists of carrying 12,042
on propaganda or otherwise attempting to influence legislation; 12,043
sales to offices administering one or more homes for the aged or 12,044
one or more hospital facilities exempt under section 140.08 of 12,045
the Revised Code; and sales to organizations described in 12,046
division (D) of section 5709.12 of the Revised Code. 12,047
"Charitable purposes" means the relief of poverty; the 12,049
improvement of health through the alleviation of illness, 12,050
disease, or injury; the operation of an organization exclusively 12,052
for the provision of professional, laundry, printing, and 12,053
purchasing services to hospitals or charitable institutions; the 12,055
operation of a home for the aged, as defined in section 5701.13 12,056
of the Revised Code; the operation of a radio or television 12,057
broadcasting station that is licensed by the federal 12,058
communications commission as a noncommercial educational radio or 12,059
television station; the operation of a nonprofit animal adoption 12,061
service or a county humane society; the promotion of education by 12,062
an institution of learning that maintains a faculty of qualified 12,063
instructors, teaches regular continuous courses of study, and
confers a recognized diploma upon completion of a specific 12,064
curriculum; the operation of a parent-teacher association, 12,065
booster group, or similar organization primarily engaged in the 12,066
promotion and support of the curricular or extracurricular 12,067
activities of a primary or secondary school; the operation of a 12,068
281
community or area center in which presentations in music, 12,069
dramatics, the arts, and related fields are made in order to 12,070
foster public interest and education therein; the production of 12,071
performances in music, dramatics, and the arts; or the promotion 12,073
of education by an organization engaged in carrying on research
in, or the dissemination of, scientific and technological 12,074
knowledge and information primarily for the public. 12,075
Nothing in this division shall be deemed to exempt sales to 12,077
any organization for use in the operation or carrying on of a 12,078
trade or business, or sales to a home for the aged for use in the 12,079
operation of independent living facilities as defined in division 12,080
(A) of section 5709.12 of the Revised Code. 12,081
(13) Building and construction materials and services sold 12,083
to construction contractors for incorporation into a structure or 12,084
improvement to real property under a construction contract with 12,085
this state or a political subdivision thereof, or with the United 12,086
States government or any of its agencies; building and 12,087
construction materials and services sold to construction 12,088
contractors for incorporation into a structure or improvement to 12,089
real property that are accepted for ownership by this state or 12,091
any of its political subdivisions, or by the United States 12,092
government or any of its agencies at the time of completion of 12,093
such structures or improvements; building and construction 12,094
materials sold to construction contractors for incorporation into 12,095
a horticulture structure or livestock structure for a person 12,096
engaged in the business of horticulture or producing livestock; 12,097
building materials and services sold to a construction contractor 12,098
for incorporation into a house of public worship or religious 12,099
education, or a building used exclusively for charitable purposes 12,100
under a construction contract with an organization whose purpose 12,101
is as described in division (B)(12) of this section; building and 12,102
construction materials sold for incorporation into the original 12,103
construction of a sports facility under section 307.696 of the 12,104
Revised Code; and building and construction materials and 12,105
282
services sold to a construction contractor for incorporation into 12,106
real property outside this state if such materials and services, 12,107
when sold to a construction contractor in the state in which the 12,108
real property is located for incorporation into real property in 12,109
that state, would be exempt from a tax on sales levied by that 12,110
state; 12,111
(14) Sales of ships or vessels or rail rolling stock used 12,113
or to be used principally in interstate or foreign commerce, and 12,114
repairs, alterations, fuel, and lubricants for such ships or 12,115
vessels or rail rolling stock; 12,116
(15) Sales to persons engaged in any of the activities 12,118
mentioned in division (E)(2) or (9) of section 5739.01 of the 12,119
Revised Code, to persons engaged in making retail sales, or to 12,120
persons who purchase for sale from a manufacturer tangible 12,121
personal property that was produced by the manufacturer in 12,122
accordance with specific designs provided by the purchaser, of 12,123
packages, including material and parts for packages, and of 12,124
machinery, equipment, and material for use primarily in packaging 12,125
tangible personal property produced for sale by or on the order 12,126
of the person doing the packaging, or sold at retail. "Packages" 12,127
includes bags, baskets, cartons, crates, boxes, cans, bottles, 12,128
bindings, wrappings, and other similar devices and containers, 12,129
and "packaging" means placing therein. 12,130
(16) Sales of food to persons using food stamp coupons to 12,132
purchase the food. As used in division (B)(16) of this section, 12,133
"food" has the same meaning as in the "Food Stamp Act of 1977," 12,134
91 Stat. 958, 7 U.S.C. 2012, as amended, and federal regulations 12,135
adopted pursuant to that act. 12,136
(17) Sales to persons engaged in farming, agriculture, 12,138
horticulture, or floriculture, of tangible personal property for 12,139
use or consumption directly in the production by farming, 12,140
agriculture, horticulture, or floriculture of other tangible 12,141
personal property for use or consumption directly in the 12,142
production of tangible personal property for sale by farming, 12,143
283
agriculture, horticulture, or floriculture; or material and parts 12,144
for incorporation into any such tangible personal property for 12,145
use or consumption in production; and of tangible personal 12,146
property for such use or consumption in the conditioning or 12,147
holding of products produced by and for such use, consumption, or 12,148
sale by persons engaged in farming, agriculture, horticulture, or 12,149
floriculture, except where such property is incorporated into 12,150
real property; 12,151
(18) Sales of drugs dispensed by a licensed pharmacist 12,154
upon the order of a licensed health professional authorized to 12,156
prescribe drugs to a human being, as the term "licensed health
professional authorized to prescribe drugs" is defined in section 12,157
4729.01 of the Revised Code; insulin as recognized in the 12,159
official United States pharmacopoeia; urine and blood testing 12,160
materials when used by diabetics or persons with hypoglycemia to 12,161
test for glucose or acetone; hypodermic syringes and needles when 12,162
used by diabetics for insulin injections; epoetin alfa when 12,163
purchased for use in the treatment of persons with end-stage 12,164
renal disease; hospital beds when purchased for use by persons 12,166
with medical problems for medical purposes; and oxygen and 12,167
oxygen-dispensing equipment when purchased for use by persons 12,168
with medical problems for medical purposes;
(19) Sales of artificial limbs or portion thereof, breast 12,170
prostheses, and other prosthetic devices for humans; braces or 12,171
other devices for supporting weakened or nonfunctioning parts of 12,172
the human body; wheelchairs; devices used to lift wheelchairs 12,173
into motor vehicles and parts and accessories to such devices; 12,174
crutches or other devices to aid human perambulation; and items 12,175
of tangible personal property used to supplement impaired 12,176
functions of the human body such as respiration, hearing, or 12,177
elimination. No exemption under this division shall be allowed 12,178
for nonprescription drugs, medicines, or remedies; items or 12,179
devices used to supplement vision; items or devices whose 12,180
function is solely or primarily cosmetic; or physical fitness 12,181
284
equipment. This division does not apply to sales to a physician 12,182
or medical facility for use in the treatment of a patient. 12,183
(20) Sales of emergency and fire protection vehicles and 12,185
equipment to nonprofit organizations for use solely in providing 12,186
fire protection and emergency services for political subdivisions 12,187
of the state; 12,188
(21) Sales of tangible personal property manufactured in 12,190
this state, if sold by the manufacturer in this state to a 12,191
retailer for use in the retail business of the retailer outside 12,192
of this state and if possession is taken from the manufacturer by 12,194
the purchaser within this state for the sole purpose of 12,195
immediately removing the same from this state in a vehicle owned 12,196
by the purchaser;
(22) Sales of services provided by the state or any of its 12,198
political subdivisions, agencies, instrumentalities, 12,199
institutions, or authorities, or by governmental entities of the 12,200
state or any of its political subdivisions, agencies, 12,201
instrumentalities, institutions, or authorities; 12,202
(23) Sales of motor vehicles to nonresidents of this state 12,204
upon the presentation of an affidavit executed in this state by 12,205
the nonresident purchaser affirming that the purchaser is a 12,206
nonresident of this state, that possession of the motor vehicle 12,207
is taken in this state for the sole purpose of immediately 12,208
removing it from this state, that the motor vehicle will be 12,209
permanently titled and registered in another state, and that the 12,210
motor vehicle will not be used in this state; 12,211
(24) Sales to persons engaged in the preparation of eggs 12,213
for sale of tangible personal property used or consumed directly 12,214
in such preparation, including such tangible personal property 12,215
used for cleaning, sanitizing, preserving, grading, sorting, and 12,216
classifying by size; packages, including material and parts for 12,217
packages, and machinery, equipment, and material for use in 12,218
packaging eggs for sale; and handling and transportation 12,219
equipment and parts therefor, except motor vehicles licensed to 12,220
285
operate on public highways, used in intraplant or interplant 12,221
transfers or shipment of eggs in the process of preparation for 12,222
sale, when the plant or plants within or between which such 12,223
transfers or shipments occur are operated by the same person. 12,224
"Packages" includes containers, cases, baskets, flats, fillers, 12,225
filler flats, cartons, closure materials, labels, and labeling 12,226
materials, and "packaging" means placing therein. 12,227
(25)(a) Sales of water to a consumer for residential use, 12,229
except the sale of bottled water, distilled water, mineral water, 12,230
carbonated water, or ice; 12,231
(b) Sales of water by a nonprofit corporation engaged 12,233
exclusively in the treatment, distribution, and sale of water to 12,234
consumers, if such water is delivered to consumers through pipes 12,235
or tubing. 12,236
(26) Fees charged for inspection or reinspection of motor 12,238
vehicles under section 3704.14 of the Revised Code; 12,239
(27) Sales of solar, wind, or hydrothermal energy systems 12,241
that meet the guidelines established under division (B) of 12,242
section 1551.20 of the Revised Code, components of such systems 12,243
that are identified under division (B) or (D) of that section, or 12,244
charges for the installation of such systems or components, made 12,245
during the period from August 14, 1979, through December 31, 12,246
1985; 12,247
(28) Sales to persons licensed to conduct a food service 12,249
operation pursuant to section 3732.03 of the Revised Code, of 12,250
tangible personal property primarily used directly for the 12,251
following:
(a) To prepare food for human consumption for sale; 12,253
(b) To preserve food that has been or will be prepared for 12,256
human consumption for sale by the food service operator, not
including tangible personal property used to display food for 12,257
selection by the consumer; 12,258
(c) To clean tangible personal property used to prepare or 12,260
serve food for human consumption for sale. 12,261
286
(29) Sales of animals by nonprofit animal adoption 12,263
services or county humane societies; 12,264
(30) Sales of services to a corporation described in 12,266
division (A) of section 5709.72 of the Revised Code, and sales of 12,267
tangible personal property that qualifies for exemption from 12,268
taxation under section 5709.72 of the Revised Code; 12,269
(31) Sales and installation of agricultural land tile, as 12,271
defined in division (B)(5)(a) of section 5739.01 of the Revised 12,272
Code; 12,273
(32) Sales and erection or installation of portable grain 12,275
bins, as defined in division (B)(5)(b) of section 5739.01 of the 12,276
Revised Code; 12,277
(33) The sale, lease, repair, and maintenance of;, parts 12,279
for;, or items attached to or incorporated in, motor vehicles 12,281
that are primarily used for transporting tangible personal 12,283
property by a person engaged in highway transportation for hire; 12,284
(34) Sales to the state headquarters of any veterans' 12,286
organization in Ohio that is either incorporated and issued a 12,287
charter by the congress of the United States or is recognized by 12,288
the United States veterans administration, for use by the 12,289
headquarters; 12,290
(35) Sales to a telecommunications service vendor of 12,292
tangible personal property and services used directly and 12,293
primarily in transmitting, receiving, switching, or recording any 12,294
interactive, two-way electromagnetic communications, including 12,295
voice, image, data, and information, through the use of any 12,296
medium, including, but not limited to, poles, wires, cables, 12,297
switching equipment, computers, and record storage devices and 12,298
media, and component parts for the tangible personal property. 12,299
The exemption provided in division (B)(35) of this section shall 12,300
be in lieu of all other exceptions under division (E)(2) of 12,301
section 5739.01 of the Revised Code to which a telecommunications 12,302
service vendor may otherwise be entitled based upon the use of 12,303
the thing purchased in providing the telecommunications service. 12,304
287
(36) Sales of investment metal bullion and investment 12,306
coins. "Investment metal bullion" means any elementary precious 12,307
metal that has been put through a process of smelting or 12,308
refining, including, but not limited to, gold, silver, platinum, 12,309
and palladium, and which is in such state or condition that its 12,310
value depends upon its content and not upon its form. 12,311
"Investment metal bullion" does not include fabricated precious 12,312
metal that has been processed or manufactured for one or more 12,314
specific and customary industrial, professional, or artistic 12,315
uses. "Investment coins" means numismatic coins or other forms 12,316
of money and legal tender manufactured of gold, silver, platinum, 12,317
palladium, or other metal under the laws of the United States or 12,318
any foreign nation with a fair market value greater than any 12,319
statutory or nominal value of such coins. 12,320
(37)(a) Sales where the purpose of the consumer is to use 12,322
or consume the things transferred in making retail sales and 12,323
consisting of newspaper inserts, catalogues, coupons, flyers, 12,324
gift certificates, or other advertising material that prices and 12,326
describes tangible personal property offered for retail sale. 12,327
(b) Sales to direct marketing vendors of preliminary 12,329
materials such as photographs, artwork, and typesetting that will 12,330
be used in printing advertising material; of printed matter that 12,331
offers free merchandise or chances to win sweepstake prizes and 12,332
that is mailed to potential customers with advertising material 12,333
described in division (B)(37)(a) of this section; and of 12,334
equipment such as telephones, computers, facsimile machines, and 12,335
similar tangible personal property primarily used to accept 12,336
orders for direct marketing retail sales. 12,337
(c) Sales of automatic food vending machines that preserve 12,339
food with a shelf life of forty-five days or less by 12,340
refrigeration and dispense it to the consumer. 12,341
For purposes of division (B)(37) of this section, "direct 12,343
marketing" means the method of selling where consumers order 12,344
tangible personal property by United States mail, delivery 12,345
288
service, or telecommunication and the vendor delivers or ships 12,346
the tangible personal property sold to the consumer from a 12,347
warehouse, catalogue distribution center, or similar fulfillment 12,348
facility by means of the United States mail, delivery service, or 12,349
common carrier. 12,350
(38) Sales to a person engaged in the business of 12,352
horticulture or producing livestock of materials to be 12,353
incorporated into a horticulture structure or livestock 12,354
structure; 12,355
(39) The sale of a motor vehicle that is used exclusively 12,357
for a vanpool ridesharing arrangement to persons participating in 12,358
the vanpool ridesharing arrangement when the vendor is selling 12,359
the vehicle pursuant to a contract between the vendor and the 12,360
department of transportation;
(40) Sales of personal computers, computer monitors, 12,362
computer keyboards, modems, and other peripheral computer 12,363
equipment to an individual who is licensed or certified to teach 12,364
in an elementary or a secondary school in this state for use by 12,365
that individual in preparation for teaching elementary or
secondary school students; 12,366
(41) Sales to a professional racing team of any of the 12,368
following: 12,369
(a) Motor racing vehicles; 12,371
(b) Repair services for motor racing vehicles; 12,374
(c) Items of property that are attached to or incorporated 12,377
in motor racing vehicles, including engines, chassis, and all 12,378
other components of the vehicles, and all spare, replacement, and 12,379
rebuilt parts or components of the vehicles; except not including 12,380
tires, consumable fluids, paint, and accessories consisting of 12,381
instrumentation sensors and related items added to the vehicle to 12,382
collect and transmit data by means of telemetry and other forms 12,383
of communication.
(42) Sales of used manufactured homes and used mobile 12,385
homes, as defined in section 5739.0210 of the Revised Code, made 12,386
289
on or after January 1, 2000; 12,387
(43) SALES OF TANGIBLE PERSONAL PROPERTY AND SERVICES TO A 12,389
PROVIDER OF ELECTRICITY USED OR CONSUMED DIRECTLY AND PRIMARILY 12,390
IN GENERATING, TRANSMITTING, OR DISTRIBUTING ELECTRICITY FOR USE 12,391
BY OTHERS, INCLUDING PROPERTY THAT IS OR IS TO BE INCORPORATED 12,392
INTO AND WILL BECOME A PART OF THE CONSUMER'S PRODUCTION, 12,393
TRANSMISSION, OR DISTRIBUTION SYSTEM AND THAT RETAINS ITS 12,394
CLASSIFICATION AS TANGIBLE PERSONAL PROPERTY AFTER INCORPORATION; 12,395
FUEL OR POWER USED IN THE PRODUCTION, TRANSMISSION, OR 12,396
DISTRIBUTION OF ELECTRICITY; AND TANGIBLE PERSONAL PROPERTY AND 12,397
SERVICES USED IN THE REPAIR AND MAINTENANCE OF THE PRODUCTION, 12,398
TRANSMISSION, OR DISTRIBUTION SYSTEM, INCLUDING ONLY THOSE MOTOR 12,399
VEHICLES AS ARE SPECIALLY DESIGNED AND EQUIPPED FOR SUCH USE. 12,400
THE EXEMPTION PROVIDED IN THIS DIVISION SHALL BE IN LIEU OF ALL 12,401
OTHER EXCEPTIONS IN DIVISION (E)(2) OF SECTION 5739.01 OF THE 12,402
REVISED CODE TO WHICH A PROVIDER OF ELECTRICITY MAY OTHERWISE BE 12,404
ENTITLED BASED ON THE USE OF THE TANGIBLE PERSONAL PROPERTY OR 12,405
SERVICE PURCHASED IN GENERATING, TRANSMITTING, OR DISTRIBUTING 12,406
ELECTRICITY.
For the purpose of the proper administration of this 12,408
chapter, and to prevent the evasion of the tax, it is presumed 12,409
that all sales made in this state are subject to the tax until 12,410
the contrary is established. 12,411
As used in this section, except in division (B)(16) of this 12,413
section, "food" includes cereals and cereal products, milk and 12,414
milk products including ice cream, meat and meat products, fish 12,415
and fish products, eggs and egg products, vegetables and 12,416
vegetable products, fruits, fruit products, and pure fruit 12,417
juices, condiments, sugar and sugar products, coffee and coffee 12,418
substitutes, tea, and cocoa and cocoa products. It does not 12,419
include: spirituous or malt liquors; soft drinks; sodas and 12,420
beverages that are ordinarily dispensed at bars and soda 12,421
fountains or in connection therewith, other than coffee, tea, and 12,422
cocoa; root beer and root beer extracts; malt and malt extracts; 12,423
290
mineral oils, cod liver oils, and halibut liver oil; medicines, 12,424
including tonics, vitamin preparations, and other products sold 12,425
primarily for their medicinal properties; and water, including 12,426
mineral, bottled, and carbonated waters, and ice. 12,427
(C) The levy of an excise tax on transactions by which 12,429
lodging by a hotel is or is to be furnished to transient guests 12,430
pursuant to this section and division (B) of section 5739.01 of 12,431
the Revised Code does not prevent any of the following: 12,432
(1) A municipal corporation or township from levying an 12,434
excise tax for any lawful purpose not to exceed three per cent on 12,435
transactions by which lodging by a hotel is or is to be furnished 12,436
to transient guests in addition to the tax levied by this 12,437
section. If a municipal corporation or township repeals a tax 12,438
imposed under division (C)(1) of this section and a county in 12,439
which the municipal corporation or township has territory has a 12,440
tax imposed under division (C) of section 5739.024 of the Revised 12,441
Code in effect, the municipal corporation or township may not 12,442
reimpose its tax as long as that county tax remains in effect. A 12,443
municipal corporation or township in which a tax is levied under 12,444
division (B)(2) of section 351.021 of the Revised Code may not 12,445
increase the rate of its tax levied under division (C)(1) of this 12,446
section to any rate that would cause the total taxes levied under 12,447
both of those divisions to exceed three per cent on any lodging 12,448
transaction within the municipal corporation or township. 12,449
(2) A municipal corporation or a township from levying an 12,451
additional excise tax not to exceed three per cent on such 12,452
transactions pursuant to division (B) of section 5739.024 of the 12,453
Revised Code. Such tax is in addition to any tax imposed under 12,454
division (C)(1) of this section. 12,455
(3) A county from levying an excise tax pursuant to 12,457
division (A) of section 5739.024 of the Revised Code. 12,458
(4) A county from levying an excise tax not to exceed 12,460
three per cent of such transactions pursuant to division (C) of 12,461
section 5739.024 of the Revised Code. Such a tax is in addition 12,462
291
to any tax imposed under division (C)(3) of this section. 12,463
(5) A convention facilities authority, as defined in 12,465
division (A) of section 351.01 of the Revised Code, from levying 12,466
the excise taxes provided for in division (B) of section 351.021 12,467
of the Revised Code. 12,468
(6) A county from levying an excise tax not to exceed one 12,470
and one-half per cent of such transactions pursuant to division 12,471
(D) of section 5739.024 of the Revised Code. Such tax is in 12,472
addition to any tax imposed under division (C)(3) or (4) of this 12,473
section. 12,474
(7) A county from levying an excise tax not to exceed one 12,476
and one-half per cent of such transactions pursuant to division 12,477
(E) of section 5739.024 of the Revised Code. Such a tax is in 12,478
addition to any tax imposed under division (C)(3), (4), or (6) of 12,479
this section. 12,480
(D) The levy of this tax on retail sales of recreation and 12,482
sports club service shall not prevent a municipal corporation 12,483
from levying any tax on recreation and sports club dues or on any 12,484
income generated by recreation and sports club dues. 12,485
Sec. 5747.31. (A) This section applies to an individual 12,494
or estate that is a proprietor or a pass-through entity investor. 12,495
(B)(1) A taxpayer described in division (A) of this 12,497
section is allowed a credit that shall be computed and claimed in 12,498
the same manner as the credit allowed to corporations in section 12,499
5733.33 of the Revised Code, with the following adjustments: 12,500
(a) The taxpayer shall claim one-seventh of the credit 12,502
amount for the calendar year in which the new manufacturing 12,503
machinery and equipment is purchased for use in the county by the 12,504
taxpayer or partnership. One-seventh of the taxpayer credit 12,505
amount is allowed for each of the six ensuing taxable years. 12,506
(b) Substitute "taxable year" for the phrase "calendar 12,509
year prior to the first day of a tax year" wherever the phrase 12,510
appears in division (H)(1) of section 5733.33 of the Revised 12,512
Code. 12,513
292
(2) The taxpayer shall claim the credit in the order 12,515
required under section 5747.98 of the Revised Code. 12,516
(3) THE TAXPAYER SHALL FILE WITH THE DEPARTMENT OF 12,518
DEVELOPMENT A NOTICE OF INTENT TO CLAIM THE CREDIT IN ACCORDANCE 12,519
WITH DIVISION (E) OF SECTION 5733.33 OF THE REVISED CODE. 12,520
(C)(1) A TAXPAYER DESCRIBED IN DIVISION (A) OF THIS 12,522
SECTION IS ALLOWED A CREDIT THAT SHALL BE COMPUTED IN THE SAME 12,525
MANNER AS THE CREDIT ALLOWED TO A CORPORATION IN SECTION 5733.39 12,526
OF THE REVISED CODE, WITH THE FOLLOWING ADJUSTMENTS: 12,527
(a) SUBSTITUTE "TAXABLE YEAR" FOR "TAX YEAR" WHEREVER "TAX 12,529
YEAR" APPEARS IN SECTION 5733.39 OF THE REVISED CODE; 12,530
(b) SUBSTITUTE "5747.02" FOR "5733.06" WHEREVER "5733.06" 12,532
APPEARS IN SECTION 5733.39 OF THE REVISED CODE; 12,533
(c) SUBSTITUTE "5747.98" FOR "5733.98" WHEREVER "5733.98" 12,535
APPEARS IN SECTION 5733.39 OF THE REVISED CODE; 12,536
(d) THE CREDIT ALLOWED UNDER DIVISION (C) OF THIS SECTION 12,539
SHALL BE SUBJECT TO THE SAME DISALLOWANCE FOR THE CARRYOVER OR 12,540
CARRYBACK OF ANY UNUSED CREDIT AS PROVIDED IN DIVISION (C) OF 12,541
SECTION 5733.39 OF THE REVISED CODE. 12,542
(2) NOTWITHSTANDING SECTION 5747.131 OF THE REVISED CODE 12,544
TO THE CONTRARY, A TAXPAYER CLAIMING A CREDIT UNDER THIS DIVISION 12,546
HAS THE BURDEN OF ESTABLISHING BY A PREPONDERANCE OF THE EVIDENCE 12,547
THAT THE DOCTRINES ENUMERATED IN SECTION 5747.131 OF THE REVISED 12,548
CODE DO NOT APPLY WITH RESPECT TO THE CREDIT PROVIDED BY THIS 12,550
DIVISION.
(D) Nothing in this section shall be construed to limit or 12,552
disallow pass-through treatment of a pass-through entity's 12,553
income, deductions, credits, or other amounts necessary to 12,554
compute the tax imposed by section 5747.02 of the Revised Code 12,555
and the credits allowed by this chapter.
(D) The taxpayer shall file with the department of 12,557
development a notice of intent to claim the credit in accordance 12,558
with division (E) of section 5733.33 of the Revised Code. 12,559
Sec. 5747.98. (A) To provide a uniform procedure for 12,568
293
calculating the amount of tax due under section 5747.02 of the 12,569
Revised Code, a taxpayer shall claim any credits to which the 12,570
taxpayer is entitled in the following order: 12,572
(1) The retirement income credit under division (B) of 12,574
section 5747.055 of the Revised Code; 12,575
(2) The senior citizen credit under division (C) of 12,577
section 5747.05 of the Revised Code; 12,578
(3) The lump sum distribution credit under division (D) of 12,580
section 5747.05 of the Revised Code; 12,581
(4) The dependent care credit under section 5747.054 of 12,583
the Revised Code; 12,584
(5) The lump sum retirement income credit under division 12,586
(C) of section 5747.055 of the Revised Code; 12,587
(6) The lump sum retirement income credit under division 12,589
(D) of section 5747.055 of the Revised Code; 12,590
(7) The lump sum retirement income credit under division 12,592
(E) of section 5747.055 of the Revised Code; 12,593
(8) The credit for displaced workers who pay for job 12,595
training under section 5747.27 of the Revised Code; 12,596
(9) The campaign contribution credit under section 5747.29 12,599
of the Revised Code; 12,601
(10) The twenty-dollar personal exemption credit under 12,603
section 5747.022 of the Revised Code; 12,604
(11) The joint filing credit under division (G) of section 12,607
5747.05 of the Revised Code;
(12) The nonresident credit under division (A) of section 12,610
5747.05 of the Revised Code;
(13) The credit for a resident's out-of-state income under 12,613
division (B) of section 5747.05 of the Revised Code;
(14) The credit for employers that enter into agreements 12,616
with child day-care centers under section 5747.34 of the Revised 12,617
Code;
(15) The credit for employers that reimburse employee 12,619
child day-care expenses under section 5747.36 of the Revised 12,621
294
Code;
(16) The credit for adoption of a minor child under 12,623
section 5747.37 of the Revised Code; 12,624
(17) The credit for manufacturing investments under 12,625
section 5747.051 of the Revised Code; 12,626
(18) The credit for purchases of new manufacturing 12,628
machinery and equipment under section 5747.26 or section 5747.261 12,630
of the Revised Code;
(19) The second credit for purchases of new manufacturing 12,633
machinery and equipment AND THE CREDIT FOR USING OHIO COAL under 12,634
section 5747.31 of the Revised Code; 12,635
(20) The enterprise zone credit under section 5709.66 of 12,637
the Revised Code; 12,638
(21) The credit for the eligible costs associated with a 12,640
voluntary action under section 5747.32 of the Revised Code; 12,642
(22) The credit for employers that establish on-site child 12,645
day-care centers under section 5747.35 of the Revised Code; 12,646
(23) The credit for purchases of qualifying grape 12,648
production property under section 5747.28 of the Revised Code; 12,649
(24) The export sales credit under section 5747.057 of the 12,652
Revised Code;
(25) The credit for research and development and 12,654
technology transfer investors under section 5747.33 of the 12,655
Revised Code;
(26) The enterprise zone credits under section 5709.65 of 12,658
the Revised Code;
(27) The refundable jobs creation credit under section 12,661
5747.058 of the Revised Code;
(28) The refundable credit for taxes paid by a qualifying 12,663
entity granted under section 5747.059 of the Revised Code; 12,664
(29) The refundable credits for taxes paid by a qualifying 12,667
pass-through entity granted under division (J) of section 5747.08 12,669
of the Revised Code.
(B) For any credit except the refundable credits 12,671
295
enumerated in divisions (A)(27), (28), and (29) of this section 12,673
and the credit granted under division (I) of section 5747.08 of 12,674
the Revised Code, the amount of the credit for a taxable year 12,675
shall not exceed the tax due after allowing for any other credit 12,676
that precedes it in the order required under this section. Any 12,677
excess amount of a particular credit may be carried forward if 12,678
authorized under the section creating that credit. Nothing in 12,679
this chapter shall be construed to allow a taxpayer to claim, 12,680
directly or indirectly, a credit more than once for a taxable 12,681
year.
Section 2. That existing sections 113.061, 133.04, 12,683
715.013, 718.01, 1551.33, 1551.35, 3317.028, 4905.01, 4905.03, 12,685
4905.10, 4905.14, 4905.33, 4905.34, 4905.40, 4905.402, 4905.42, 12,686
4905.46, 4905.70, 4906.10, 4909.01, 4909.05, 4909.15, 4909.161, 12,687
4911.18, 4933.14, 4933.15, 4933.33, 4933.81, 4935.03, 4935.04, 12,688
5117.01, 5117.02, 5117.03, 5117.04, 5117.05, 5117.07, 5117.08, 12,689
5117.09, 5117.10, 5117.12, 5701.03, 5703.052, 5703.053, 5703.14, 12,691
5705.34, 5727.01, 5727.02, 5727.05, 5727.06, 5727.11, 5727.111, 12,692
5727.15, 5727.30, 5727.31, 5727.311, 5727.32, 5727.33, 5727.38, 12,693
5727.42, 5727.45, 5727.47, 5727.53, 5727.60, 5727.61, 5727.72, 12,694
5727.99, 5733.04, 5733.05, 5733.051, 5733.057, 5733.06, 5733.09, 12,695
5733.33, 5733.98, 5739.011, 5739.02, 5747.31, and 5747.98 and 12,697
sections 4905.301, 4905.66, 4905.67, 4905.68, 4905.69, 4909.157, 12,698
4909.158, 4909.159, 4909.191, 4909.192, 4909.193, 4913.01, 12,699
4913.02, 4913.03, 4913.04, 4913.05, 4913.06, 4913.07, 4933.27, 12,700
4933.34, 5727.231, and 5727.73 of the Revised Code are hereby 12,701
repealed.
Section 3. Sections 5727.111 and 5727.15 of the Revised 12,703
Code, as amended by this act, shall first apply to tax year 2001. 12,704
Section 4. Sections 4933.33, 5727.30, 5727.32, and 5727.33 12,706
of the Revised Code, as amended by this act, shall first apply to 12,707
the excise tax assessed by the Tax Commissioner for tax year 12,708
2002.
Section 5. Sections 1551.33, 1551.35, 4905.01, 4905.03, 12,710
296
4905.10, 4905.14, 4905.33, 4905.34, 4905.40, 4905.402, 4905.42, 12,711
4905.70, 4909.01, 4909.05, 4909.15, 4909.161, 4935.04, and 12,713
5703.14 of the Revised Code, as amended by this act, shall take 12,714
effect on January 1, 2001, but if the Public Utilities Commission 12,715
issues an order under division (C) of section 4928.01 of the 12,716
Revised Code, as enacted by this act, the amendments to such 12,717
sections shall be applied accordingly. In addition, the 12,718
amendment of division (A)(4)(b) of section 4909.15 of the Revised 12,719
Code, as amended by this act, shall not be applied until January 12,720
1, 2002.
Section 6. Section 5727.45 of the Revised Code, as amended 12,722
by this act, shall take effect January 1, 2002. 12,723
Section 7. Sections 5117.01, 5117.02, 5117.03, 5117.04, 12,725
5117.05, 5117.07, 5117.08, 5117.09, 5117.10, 5117.12, and 5703.14 12,726
of the Revised Code, as amended by this act, shall take effect on 12,729
July 1, 2000.
Section 8. Section 5727.391 of the Revised Code is hereby 12,732
repealed effective January 1, 2002.
Section 9. Sections 4905.301, 4905.66, 4905.67, 4905.68, 12,735
4905.69, 4909.157, 4909.158, 4909.159, 4909.191, 4909.192, 12,736
4909.193, 4913.01, 4913.02, 4913.03, 4913.04, 4913.05, 4913.06, 12,737
4913.07, 4933.27, and 4933.34 of the Revised Code, as repealed by 12,738
this act, shall take effect on January 1, 2001, but if the Public 12,739
Utilities Commission issues an order under division (C) of 12,740
section 4928.01 of the Revised Code, as enacted by this act, the 12,741
repeal of such sections shall be applied accordingly. 12,742
Section 10. The Public Utilities Commission, Consumers' 12,744
Counsel, and the Attorney General shall develop a memorandum of 12,745
understanding not later than January 1, 2000, to establish a 12,746
system to respond effectively and efficiently to residential 12,747
consumer inquiries and complaints and shall provide a joint 12,748
report to the General Assembly on the efforts of the three 12,749
agencies not later than June 30, 2002. 12,750
Section 11. (A) As used in this section: 12,752
297
(1) "Electric company," "combined company," and "rural 12,754
electric company" have the same meanings as in section 5727.01 of 12,756
the Revised Code.
(2) "Gross receipts" means gross receipts determined in 12,758
accordance with section 5727.33 of the Revised Code and any 12,760
receipts received by an electric company, combined company, or 12,761
rural electric company after April 30, 2001, from the 12,762
distribution of electricity that was not subject to the excise 12,763
tax imposed by section 5727.81 of the Revised Code. 12,764
(B) Each electric company, combined company, and rural 12,766
electric company shall pay the public utility excise tax imposed 12,768
by section 5727.30 of the Revised Code on the company's gross 12,769
receipts received during the period of May 1, 2000, through April 12,770
30, 2001. Receipts received after August 1, 2001, are not 12,772
subject to the tax on gross receipts under this section if an 12,773
electric company, combined company, or rural electric company 12,774
takes reasonable collection measures to collect the gross 12,775
receipts. Notwithstanding section 5727.31 of the Revised Code, 12,776
each electric company, combined company, and rural electric 12,777
company shall make tax payments toward that liability. The first 12,778
payment must be made on or before October 15, 2000, and shall 12,780
equal one-third of the estimated liability shown in the report 12,781
filed on or before August 1, 2000. The second payment must be 12,782
made on or before March 1, 2001, and shall equal one-third of the 12,783
tax assessed by the Tax Commissioner on or before the first 12,784
Monday in November, 2000. The last payment must be made on or 12,785
before June 1, 2001, and shall equal one-fourth of the tax 12,786
assessed by the commissioner. The final report for the period of
May 1, 2000, through April 30, 2001, shall be filed by an 12,787
electric company, a combined company, or a rural electric company 12,789
on or before August 1, 2001, in accordance with division (A) of 12,790
section 5727.31 and section 5727.32 of the Revised Code. 12,791
On or before the first Monday of November 2001, the Tax 12,793
Commissioner shall assess an excise tax equal to four and 12,794
298
three-quarters per cent of the gross receipts received by 12,795
electric companies, combined companies, and rural electric 12,796
companies during the period of May 1, 2000, through April 30, 12,798
2001. Except as provided in section 5727.03 of the Revised Code, 12,799
as enacted by this act, after payment of this assessment, 12,800
electric companies, rural electric companies, and combined 12,801
companies, to the extent of their activities as an electric 12,802
company, are not subject to the excise tax imposed by section 12,803
5727.30 of the Revised Code. 12,804
Section 12. Electric companies and combined companies, as 12,806
defined in section 5727.01 of the Revised Code, shall first be 12,808
subject to the corporation franchise tax under Chapter 5733. of 12,809
the Revised Code for tax year 2002, as "tax year" is defined in 12,810
section 5733.04 of the Revised Code. For tax year 2002, an 12,811
electric company or a combined company shall pay two-thirds of 12,812
its total corporation franchise tax liability under Chapter 5733. 12,813
of the Revised Code. The amendments in this act to sections 12,814
4909.15, 5733.04, 5733.05, 5733.051, 5733.057, 5733.06, 5733.09, 12,815
5733.33, 5733.98, 5747.31, and 5747.98 of the Revised Code, and 12,817
the enactment in this act of sections 5733.059, 5733.0510, and
5733.39 of the Revised Code, first apply for tax year 2002. 12,819
Section 13. An electric company or a combined company that 12,821
is entitled to carry forward a credit against its public utility 12,823
excise tax liability under section 5727.391 of the Revised Code 12,824
before the repeal of that section under this act, is not entitled 12,825
to carry forward any amount remaining after its last public 12,826
utility excise tax payment and claim that amount as a credit 12,827
against its corporation franchise tax liability under section 12,828
5733.39 of the Revised Code, as enacted by this act. The credit 12,829
granted under section 5727.391 of the Revised Code only applies 12,830
through the last assessment issued by the Tax Commissioner under 12,831
Section 11 of this act.
Section 14. The tax levied under section 5727.81 of the 12,833
Revised Code first applies on and after May 1, 2001. Before that 12,834
299
date, any electric distribution company shall register with the 12,835
Tax Commissioner in accordance with section 5727.93 of the 12,836
Revised Code, as enacted by this act. 12,837
Section 15. The intent of division (C) of section 5727.81 12,839
of the Revised Code, as enacted by this act, is to craft a 12,840
revenue neutral solution for all customer classes, with any 12,841
margin of error being resolved in favor of residential customers. 12,842
Section 16. The Director of Development shall study and 12,845
report to the General Assembly concerning the desirability of 12,846
implementing a tax credit program for the creation of new jobs in 12,847
Ohio to manufacture or assemble generating equipment and 12,848
components for global use. The director shall determine and 12,849
recommend how the tax credit should be structured to encourage 12,850
investments in facilities, equipment, and services related to the 12,851
manufacture, assembly, shipping preparation, and transportation 12,852
of generation equipment or components for global use, and to 12,853
create new jobs as a result of such investments.
On or before December 31, 2000, the Director of Development 12,855
shall issue a report of its findings to the Senate and House of 12,856
Representatives in accordance with division (B) of section 101.68 12,857
of the Revised Code. 12,858
Section 17. Section 5727.47 of the Revised Code is 12,860
presented in this act as a composite of the section as amended by 12,861
both Am. Sub. H.B. 904 and Am. S.B. 358 of the 119th General 12,862
Assembly, with the new language of neither of the acts shown in 12,863
capital letters. This is in recognition of the principle stated 12,864
in division (B) of section 1.52 of the Revised Code that such 12,865
amendments are to be harmonized where not substantively 12,866
irreconcilable and constitutes a legislative finding that such is 12,867
the resulting version in effect prior to the effective date of 12,868
this act.
Section 18. Section 4928.431 of the Revised Code, as 12,871
enacted by this act, is hereby repealed effective December 31, 12,872
2005, at which time the Electric Employee Assistance Advisory 12,873
300
Board created by that section shall cease to exist. 12,874
Section 19. There is hereby created the Joint Legislative 12,877
Committee on the Kilowatt-Hour Tax. The Committee shall consist 12,878
of five members of the House of Representatives and five members 12,879
of the Senate. Three members of the House of Representatives and 12,880
three members of the Senate shall be members of the majority 12,881
party appointed by the Speaker of the House of Representatives 12,882
and President of the Senate, respectively, and two members of the 12,883
House of Representatives and two members of the Senate shall be 12,884
members of the minority party appointed by the Minority Leader of 12,885
the House of Representatives and Minority Leader of the Senate, 12,886
respectively. A member of the Joint Legislative Committee on 12,887
the Kilowatt-Hour Tax designated by the Speaker and the Senate 12,888
President shall serve as the chairperson of the Committee. Any 12,889
vacancies that occur on the Committee shall be filled in the 12,890
manner of the original appointment. 12,891
The Committee shall study the effects, fairness, and 12,893
structure of the kilowatt-hour tax imposed by section 5727.81 of 12,894
the Revised Code, as enacted by this act, on purchasers of 12,895
electricity. The Committee may conduct public hearings on these 12,896
matters and request assistance from the Tax Commissioner. 12,897
Not later than September 30, 2000, the Committee shall 12,899
issue a report of its findings, including recommendations 12,900
regarding changes to the kilowatt-hour tax and any alternatives 12,901
to the tax, to the Senate and House of Representatives in 12,902
accordance with division (B) of section 101.68 of the Revised 12,903
Code. Thereafter, the Committee shall cease to exist. 12,904
Section 20. If any provision of law that constitutes the 12,907
whole or part of a codified or uncodified section of law 12,908
contained in this act, or if any application of any provision of 12,909
law that constitutes the whole or part of a codified or 12,910
uncodified section of law contained in this act, is held invalid, 12,911
the invalidity does not affect other provisions of law or 12,912
applications of provisions of law that can be given effect 12,913
301
without the invalid provision of law or application. To this
end, the provisions of law of which the codified and uncodified 12,914
sections contained in this act are composed, and their 12,915
applications, are independent and severable. 12,916
Section 21. It is the intent of the General Assembly to 12,918
enact laws prescribing a uniform set of procedures for the 12,919
taxation of electric company income by municipal corporations and 12,920
to have such laws in effect prior to the time those companies 12,921
become subject to municipal income taxes, as authorized by this 12,922
act.
Section 21. Section 4905.402 of the Revised Code, as 12,924
amended by this act, applies, with respect to a domestic electric 12,925
utility or a holding company controlling a domestic electric 12,926
utility, only to merger applications filed with the Federal 12,927
Energy Regulatory Commission after the effective date of section 12,928
4905.402 of the Revised Code, as amended by this act. Nothing in 12,929
Section 21 of this act affects the authority, if any, of the 12,930
Public Utilities Commission to consider and address merger 12,931
applications with respect to a domestic electric utility or a 12,932
holding company controlling a domestic electric utility that are 12,933
filed with the Federal Energy Regulatory Commission on or before 12,934
the effective date of section 4905.402 of the Revised Code, as 12,935
amended by this act, as such authority may exist prior to that 12,936
effective date.